Chucking the drive in another system usually sorts out if it's a bad drive or your system!
If you can't do that then check master/slave settings are correct and if you use an 80pin IDE cable the master drive MUST be on the END connector (the end that's the shortest distance from the middle connector) and slave MUST be on the MIDDLE connector! You could also try another IDE cable, and make sure DMA is enabled on the drive!
If you have Nforce drivers installed or Intel Application Accelerator then uninstall them as these have been known to cause problems! If you XP SP2 installed then I don't have any clue as I avoided installing that!
If your comfortable with drastic measures, you could uninstall your Primary/Secondary IDE controller in Device Manager and let XP rediscover them and see if that helps.
Or, if really desperate, you could just FORMAT C: and reinstall Windows