No, 32 bit should be fine. I suspect the disc is corrupted and possibly illegal as well. Can you borrow a XP install CD from a friend and try it? If that works you should be able to enter the key you have to activate it okay.
Hmmm, adpu160m.sys is not part of normal XP Install CD.
Here is what I find for it: Adpu160m.sys
with description Adaptec Windows 2000 Driver
for Ultra160 SCSI is a driver file from company Adaptec, Inc. belonging to product Adaptec Windows 2000 Driver Set v1.00.
The file is digitally signed from Adaptec, Incorporated - VeriSign Time Stamping Services Signer - G2
Do you have SCSI and are you trying to load the SCSI driver?