lomapaseo,
You seem to have missed the most important point of my post:
XP does not support SATA disks "out of the box" - you have to supply the SATA drivers at installation time.
Then it lit up the external CD drive and provided a setup screen for Windows XP, Then it spent a minute displaying all the various drivers that it was loading then it too displayed the blue screen of death having not found a proper hardrive.
Yes, because it hasn't found a SATA driver!!
I would again urge you to:
search for articles on installing XP on SATA disks
As you have confirmed that your PC doesn't have a floppy disk drive, you will need to investigate how you get the drivers onto the PC during installation.
Re: Slipstreaming drivers etc.
No idea how this is done
You will, soon enough!
Less beer, more thought!
SD