What I needed...
I recently installed XP on a new laptop with an SATA HDD. If I wanted to use the HDD as SATA, with BIOS support, I needed to have XP install the correct AHCI driver before it would begin to install. I had the driver and found out how to slipstream it and make an XP installation CD with AHCI built in.
This may not be your problem, and you may not lack AHCI, but if the installation stops with a blue screen and a request for any drivers required to be loaded on a floppy, you may lack a driver of some sort, and XP will only accept a floppy from a built-in drive.
If you have to slipstream, the program to use is nLite, found on your nearest internet.