|"the screen press any key to start setup will not appear"|
Does it boot with a splash screen? The "press any key...." prompt is probably behind that screen. Try pressing Esc or Tab to hide the screen & display the boot screen.
Is it an SATA HDD? If so, XP doesn't have drivers for it so you have to pre-load them at the beginning of the install. Press F6 when prompted, then pop in the floppy disc with the drivers on it...you do have a floppy drive, right? Choose the correct driver from the list, then continue with the XP installation.