My bootcamp problem - I might be able to help you
I have a similar, if not the exact same problem as you seem to have...
I purchased a copy of XP Pro via eBay (yep, that's how these things usually start). It is a full OEM version and includes the license key.
I went through the bootcamp installation proces, one important thing - I nevr was shown a screen where I should select between FAT32,NTFS, or to keep the current file system. I had chosen a partition size of 70 GB so NTFS is required, but I assumed the install automatically chose it for me. Went through the copying files process, recieved several errors on drivers related to WMPlayer - finally got through those. On restart I got the dreaded disk error problem.
After much research I've concluded that I have a couple of problems on my hand:
1) There are some versions of XP discs that will never let you choose the file system that you want to setup for your partition. Because this never happens the partition is never properly formatted and thus the OS does not install properly. If this happens its probably because of the disc you are using. You can try another disc (but who wants to pay money after you already LEGALLY purchased a license that didn't work?).
The other solution is to basically recreate the windows install disc by copying the contents to your hard drive, removing one specific file and then creating a bootable disc. Note this is a lengthy process and somewhat technical - the full instructions are
here... Follow the instructions that make up the third bullet point on the linekd article - you'll need access to a Windows machine with Roxio Easy CD Creator on it for this to work properly.
I followed these instructions and restarted the bootcamp install process - this time I could select between the files system formats (EXCELLENT - I thought). When it went into the actual install I still had errors with dll files that could not be found - but I got to the windows logo and the time zone setup. After going through all of that (1.5 hours into everything) I suddenly got an error saying that internet could not be configured because of a missing file. The system reboots but it is basically in safemode (no background - just blue color). I put the Mac OS disc in to update the drivers, and the disc is unable to install anything because important .dll files are missing.
Thus I have a half-baked install of Windows with no functionality. If you are unlucky as me it is because of my second problem:
#2 - the disk I have is also corrupted or there is some defect. Important system files are not readable and are not able to be copied during install.
So my final option is to try and catalog each system file error, find the .dll files and create a new bootable disc - if anyone has an easier way around this or could offer advice on how to get past this I would really appreciate it.