your HDD is HWID PCI\VEN_1106&DEV_0571&SUBSYS_05711106 that is a VIA Bus Master IDE Controller
we have the driver that supports your disk included - - - actually i am surprized it is not detected by an OEM XP disk this is a generic controler.
I have seen issues before when people had a Generic card Reader Device connected
i wonder if the problem goes away if you disconect your printer?
I wonder if you create a 3rd party DriverPack for your printer if it goes away...? http://forum.driverpacks.net/viewtopic.php?id=279
you add your apps with WPI Windows Post Installer
windows updates and such with nLite
i do this i copy xp to a folder like c:\XPSP3\
then i use nLite to integrate sp3
then i COPY c:\XPSP3\ to c:\XPRVM (never work on your original files always on a copy)
i use Ryan VM Integrator to add some updates and addons like IE7 -
(onepiece_windows_xp_post-sp3_updatepack and RED_XP_SP3_UpdatePack both have a decent update pack for use with RVM Integrator)
then i copy c:\XPRVM to c:\XPnLite (always a copy)
then i run nlite and set all my unattended settings so i don't get bothered with any silly questions (i hate that)
--- hint save your settings and leave nLite open at the create bootable iso page ---
then i Run DriverPacks
then i return to nLite and hit burn baby burn!
then i rename c:\XPnLite to c:\XP08-0729
Then i test my ISO right off the HDD in a Virtual Machine (VM) like VMWare or Virtual PC or Virtual Box
then i will either add wpi and retest or i will burn a CD/DVD and test again in VM (this time with my burned disk)
then i am ready for a live test on a machine.
the best guide in the world is at http://MSFN.ORG
http://unattended.msfn.org/unattended.x … 73bcfbd02/
It has three sections Noob... intermediate... and advanced...
we all use it and refer people to it all the time -
you have shown me you can do quite well with a nudge so... there you go
we mostly cater to sys admins IT pros and other advanced users, but, since you are polite good humored and willing...
most of the questions you have now are well covered at msfn - read the table of contents at least 
As i said,
you are in the home stretch now!
as the pieces come together for you you may become hooked...
...like we are
Have fun
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