It sounds like your cd-rom drive isn't bootable. You get the "NTLDR" error since that's XP's standard error when there is no OS installed on the primary drive. That's why I asked all those other questions. I was wanting to make sure we had all the gory details. Some of the older dual boot systems altered the MBR on the primary drive. I also needed to know if you had any other drives connected and if they may have overlays installed to work around some bios
issue. Then I also needed to know if you ever had GoBack installed since it modifies the MBR on the boot drive, but that would apply only if you had a second drive hooked up and it was set "Active."
It appears that none of that applies so we can move forward with the new information you have given.
I recommend that you get a boot disk and install using it instead of trying to boot the install CD, which apparently isn't going to work. With a good boot disk, you can work around that issue, which is probably hardware related. I'm assuming the cd-rom drive works but just isn't bootable. It must work or else you couldn't have read the Maxtor cd.
Get this XP Bootdisk
creation file. Download it and run it. Follow the screen directions to allow it to create an XP Bootdisk for you. I assume you have a floppy drive and a blank floppy. If not you'll need to get some friend to DL it for you.
When you get the boot disk created, put it in the drive bay of the ailing box and boot from it. You may need to reset the bios
to allow the floppy to read prior to the HD
Follow the screen directions to do an XP install. It has all the tools you will need for the job. I would suggest that you format the disk once again just to be sure where you stand.
Post back if any ??
ps. I noticed your other thread in XP. Don't post there any more since it's probably going to get locked out. Posting the same problem in more than one area is frowned upon on this board.