Unbelievable, man you are working hard for this.
is it seen as kreon at least in the scroll window,
When you put the game in and selected the drive in the top window, what is said in the bottom window.
Make sure all you pc drivers are updated,
try it on different SATA port
.net installed,
use the installer in the package,
try spti/aspi
mention this (and put a link to this thread) in XBCr 2.4 thread
We will get there ( I am the same, my X360 MB went three red lights last weekend

)
rgds,soso
EDIT: and the next one is to create a partition on your harddisk and start a new XP on it from fresh and try it on that. (I know it is really a tempting proposition

)