I wouldn't do anything too drastic yet.
If you've installed the recovery console on your system, then obviously it won't be accessible because it's on the partition in question.
You can get into the recovery console by booting into your Windows XP Installation CD. Make sure that you've set your boot order in your BIOS to check the CD-ROM Drive first. This shouldn't fail.
If you don't have the installation CD, then you can use a boot disk to perform a CHKDSK / R
. I think the Windows XP Setup boot disks (the 6 boot disks) allows you to perform a CHKDSK...I'm not too sure. You can download it from the Internet here:
...I'm not too sure if it has CHKDSK functionality though. Also, I think there are better boot disks out there, somewhere, which let you do a CHKDSK using just one floppy disk.