Ok, so you've re-installed XP?
but you can't delete files, because it displays file not found?
Hmm Could be a Dynamic partition, Boot Record, Security Keys, etc. problem.
First, Go into recovery console and at the C: prompt
put CHKDSK /P that will test the drive fully.
Second, if that doesn't fix it boot again into recovery console (WinXP CD) type FIXMBR /? (/? is to find the switch commands you want) then run the FIXMBR with the switches and fix your Master Boot Record.
Finaly, if that didn't work. It's time for a full re-install with removal of partitions. So, in the XP setup treat it like a new install and delete the partitons then make them again.
Ep, glad to see you come back and tidy up...did want to ask a one day favor, I want to enhance my resume , was hoping you could make me administrator for a day, if so, take me right off since I won't be here to do anything, and don't know the slightest about the board, but it would be nice putting "served administrator osnn", if can do, THANKS