Try the following in Safe Mode then (tap F8 while booting up).
Is there a particular reason you are using FAT32 for XP? It's outmoded and insecure and you can change it to NTFS easily without loss of data.
NTFS is the standard for operating systems now.
Standard cluster size for NTFS is 4096bytes.
Once you've done that try the following:
Go to Start/Run and enter cmd then click Enter (or OK)
In the Command Prompt window type in chkdsk /r (with the space) and click Enter (assuming everything is drive c:, if not type chkdsk D: /r or whatever letter)
You will get an error response saying the volume is in use check at next reboot Y/N? Type in Y and click Enter and reboot.
The process takes a while. That should stop the error checking process from starting at every boot hopefully.
Hope that helps.
Message was edited by: Ex_Brit on 07/06/10 10:36:30 EDT AM
If that doesn't work I would need to know if you have XP SP3 on a CD or not or some way of repairing the XP SP3 installation..