you should be booting from the cd, not the hard drive
Hit F8 key to get option of safe mode
are you trying to re-install xp?
if you wanna fix the boot, get into the recovery console (windows repair) with the xp disk.
Type "fixmbr" to fix the master boot record and "fixboot" with no parameters to fix you main drives boot.
fixmbr has warnings of severe problems if messed with...are you sure?
If you have disabled your hard drives to get the cd rom to boot like i said before (that was mainly to test the drive) reinable them before trying the above method.
Not disabled...I just made HD third in line to boot
also to run your smitfraud, get in the recovery console as well, and you should be able to cd to your usb drive (ex. cd c:\)