I'm not sure why you would want to install XP onto 2 different partitions, but it seems there could be multiple reasons for the error message you are getting.
In Google I entered DRIVER IRQL NOT LESS OR EQUAL and got a number of hits.
Here are some examples;
this seems to apply if you are using D-Links DWL-510 Wireless LAN PCI Card together with Windows XP Professional.
This is an AMD forum, and I note you're using a P4, so not the same processor, but the symptoms appear to be the same.
Microsoft Knowledge Base for "Stop 0x000000D1 or DRIVER_IRQL_NOT_LESS_OR_EQUAL" might be relevant. The url is;
If that doesn't work, goto www.microsoft.com and enter DRIVER_IRQL_NOT_LESS_OR_EQUAL into the Search box.
I don't know if any of this is going to help you.
I've P4 2.8, 256MB Ram, 120 GB HDD. With the help of Boot Magic 8, I've created 3 Primary Bootable partitions. I've installed Win XP in 2 partitions and Win 98 in the 3rd one. Recently my first partition (win XP) with 20 GB space had some problems and became slow, so I decided to format the partition and reinstall win xp. But when I tried to install it from CD, everytime the setup process stops at same point and a blue screen appears with a msg that computer is shut down for safety reasons. And suggests a hardware or software problem. Part of the msg says ...
There is no software on this partition and no new hardware is installed. And every thing is working fine with my Win XP in partition 2.
Couple of months back I sucessfully reinstalled a fresh copy of Win XP on partition 2. All the partitions are formated in Fat 32. Since then there is no change in my hardware or anything.
I've also tried to install Win 98 first and then upgrading it to win xp, But I get the same message when I try to upgrade win 98 to win xp.