I always install the Windows XP recovery console on workstations (actually, servers too). It can prevent you from needing to reach for that XP CD to do a repair, and is a heckuva lot quicker than booting from CD.
But it turns out that a bug in Windows XP can give you a BSOD (blue screen of death) 0x0000007B when booting to the installed recovery console due to an inability to access the SATA driver when needed (likely, nvrd32.sys). It may tell you nvrd32.sys is not present, even though it is.
Unfortunately, your only recourse may be to reach for that XP CD and boot to the recovery console from it.
I had this problem recently with a Dell E5400 laptop.
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Interesting.
Times are a changing.
I like XP but it can be tough to fix sometimes. (But it is still easier for me to understand than NT!)
Thanks for posting.