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Your problems have nothing to do with the bios update ! (Assuming you installed one that is actually for your exact model).
Did you load Bios defaults, Save settings yet ?
You could try booting from the CD , loading the Recovery Console, and type: fixmbr - answer Yes to any prompts.
type: exit to reboot
If that doesn't help you could run a Repair installation of Windows - that may fix whatever is wrong, although it can't fix all problems, and it won't delete the personal data and updates and personal settings you have added to the partition Windows was installed on.
It only takes a little less time than it takes to run a regular Setup from scratch to find out if it fixes your problems.
For a Repair installation of Windows you must use an XP CD of the same version - Home or Pro - as your Windows installation (if that's wrong the second Repair choice will NOT show up) , and you must provide an acceptable Product Key. The Product Key that's on the official Microsoft label is an OEM one and will only be accepted by Setup if the CD is an OEM CD - either the Windows re-installation CD that you may have gotten with the laptop, or a regular Microsoft OEM XP CD - it has "For Distribution with a new PC only." printed on it.
The XP re-installation CD does not have any drivers built into it that are not built into a regular Microsoft XP CD.
(If you run Setup from scratch, you need to load drivers for your system that were not included on the XP CD, and that usually includes you must load the main chipset drivers.)
How to do an XP Repair installation of Windows, step by step:
If the XP CD does not have SP3 updates included, you will probably have to re-install them in Windows.
Tips here about how to do that without having problems (disable your resident modules of anti-malware programs, etc.):
See Response 6
"If your XP CD does not have SP3 updates included, the best time to load them is right after you have installed Windows from scratch...."
Most brand name computers that have XP on them that I've come across, if they have the Recovery disks, have a CD labelled XP re-installation CD or similar and possibly a Drivers and Applications disk or similar as well.
The XP re-installation CDs I've examined have identical files on them when compared to a Microsoft OEM XP CD (Home or Pro, whatever the version on the re-installation CD) with the same SP updates ( or no SP updates) included, except the brand name provided disk has a few small folders and their files missing that aren't essential, and at least some of the *.OEM files are different internally. They can be used the same way as a regular Windows CD, except the different data in the internally different *.OEM files may prevent you from loading Windows on a computer that does not have the brand name's bios version or possibly if the mboard model is not found to be one of the acceptable models - so you probably can't use an XP re-installation CD that came with a different brand name computer with your brand name computer, or with a generic system (the bios is the mboard manufacturer's version), to run a Repair installation of Windows procedure, or install Windows from scratch.
NOTE that I have found that at least some (all, so far) Microsoft OEM XP CDs with NO SP updates included DO NOT have the second Repair choice available that's needed to run the Repair installation.
If you're sure the XP CD you're booting with is the same version as the Windows installation on the computer - Home or Pro - if you don't see the second Repair choice , then you need to make yourself a "slipstreamed" CD (preferably a CD-R) that has at least SP1 updates integrated into the original CD's contents - if you need to do that, you might as well integrate SP3 updates into it, and SATA controller drivers if your mboard has SATA controllers - and then you boot using the "slipstreamed" CD, rather than your original one.