IRQL_NOT_LESS_OR_EQUAL: This Stop error message usually occurs during installation when there was an attempt in kernel mode to touch pageable memory at too high a process internal request level (IRQL). Typically, this error occurs when a driver uses an incorrect memory address. Other possible causes of this error include an incompatible device driver, a general hardware problem, or incompatible software.
If you're going to reinstall XP, you might consider trying Windows 7, installation ISOs for which can be downloaded from Digital River: msft-dnl.digitalrivercontent.net/.../X15-65732.iso . If it doesn't work out, you can always install XP over top of it.