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Solution
Use Windows XP Recovery Console by typing chkdsk
Change BIOS settings to first boot from CD\DVD-ROM drive and boot from Windows XP CD. Presing 'R' key, you would see screen as below,

Select the drive number of inatlled Windows XP
Enter administrator password
chkdsk
chkdsk is the short for Check Disk.This command can be used to fix file system errors and physical hard drive problems. However it cannot actually fix a physical hard drive error. It can only mark the damaged areas so Windows knows not to use them.
At the prompt: C:\WINDOWS>
Type: chkdsk
Chkdsk will attempt to repair volume corruption.
Now press Enter and your hard disk drive will be checked.