Ok. Your laptop was right in between vista and xp. Which means it is using sata hard drives which are not natively supported by xp. It seems most of these shipped with vista and many people were trying to install xp on them.
Option 1) Went to bios-->system configuration-->SATA Native Support-->changed enabled to DISABLED
Then try to perform the repair of xp after that.
Source
There is more info there.
If that does not work option 2
Option 2) download the Intel Matrix Storage Manager drivers and use nlite to slipstream into an xp install disk.
Kind of a pain. Get the file here.
Download Locations
Download to the root of your c: drive
go to a command prompt and type
iata88enu.exe -A -P C:\extract\IMver8
Press enter
This will extract the inf file to C:\extract\imver8\winall\Driver
Those are the 2 inf files you will need to use nlite
nLite - Deployment Tool for the bootable Unattended Windows installation to slip stream a xp install disk.
This was modified from other versions I saw because the file was just too hard to find directly. It is not available on HP's website and why they would give you a restore disk without these files slip streamed is beyond me.
Use the slip streamed disk with no f6 action required.
You then should be able to use the slip streamed disk to do a repair installation of xp which will restore all system files while keeping you programs and data intact.
How-to repair Windows XP