|Your Vaio most probably has SATA hdd. Win XP does not natively recognize SATA hdd. Therefore, installation cannot continue.|
What you can do is, you can slipstream SATA drivers into Win XP installation CD and install Win XP that way.
For SATA driver integration into WinXP CD, nlite will be helpful:
You can obtain SATA drivers for XP from hdd manufacturer site.
If yours were a desktop rather than a laptop, you could feed SATA drivers during Win XP installation via a diskette drive. But you cannot install a diskette drive in a laptop.
By the way, USB diskette drive is not accepted during WinXP installation.