|"120 Gig HD with Windows XP that has a corrupt system "|
Test your hard drive with hard drive manufacturer's diagnostics.
Seagate's SeaTools will test (almost) any brand of hard drive.
Do the long test.
The Dos bootable versions of SeaTools can test the hard drive when Windows will not load properly, or even when the drive has no data on it.
It the drive itself passes the test, any data problems on the drive can be fixed one way or another.