|"My H.D. is set to RAID Autodetect/ATA"|
Why? are you running a RAID array?
XP was created & released before SATA devices went mainstream, therefore it doesn't support SATA drives "out of the box". Newer systems don't necessarily need a floppy drive because they run Vista or Win7 - both of them DO support SATA, so all you need to do is boot off the DVD to run the installation.
There are at least 3 different methods of installing XP on a SATA HDD:
1. press F6 at the start of XP setup & load the SATA drivers from a floppy
2. change the SATA setting in the BIOS to "IDE mode", install XP, load the SATA drivers after XP is installed, then change the SATA BIOS setting again
3. create a new XP disk with the SATA drivers already slipstreamed into it.
Make sure you have all the latest drivers installed for the motherboard chipset, audio, video, etc. Being that your system is old/outdated, Dell may not have the latest drivers available at their site. Check the individual hardware manufacturer's sites - AMD/ATI, NVIDIA, Intel, Realtek, etc. And make sure you have SP3, IE8, Wndows Media Player 11, & all the other Windows Updates installed, along with a lightweight anti-virus (AVAST, AVG, Microsoft Security Essentials, etc). Stay away from the bloated retail software such as Norton, McAfee, etc. There is so much decent open source software available that there's rarely any need to pay for retail software anymore. And make sure to have a decent cleaner such as CCleaner-Slim installed & use it regularly.
Why are you using Cine Player to watch DVDs? You should be using WMP 11 along with the latest available codec pack, or VLC Media Player.