|If you have the drive in question connected to a cable with a CD drive also connected then the drive is an IDE ATA type, not a SATA. |
You can't install WinXP on one computer, then move the drive to a second computer and expect Windows to work. That is by Microsoft design.
If you need WinXP on that computer you need to install WinXP on that computer. You can only use a WinXP installation key on one computer at a time.
If you used a branded copy of WinXP like one from Dell, etc. then it isn't going to work at all.
After re-reading your original post I see you formatted the hard drive in the other computer. That means you erased Windows off that hard drive. It isn't going to work unless you re-install Windows on that hard drive.