welcome to sevenforums!

Where did you get your windows xp cd? If you downloaded that cd from utorrent, there is a small chance that the cd isn't bootable or corrupted.
Also, I have had similar experience on my HP g70. It wouldn't install windows xp no matter what I try. I cannot run the installer from windows of course (application hard block) and whenever it boots up, it would have a disk warning.
I think that some manufacturers include something in their bios to make sure the system is stuck with vista or beyond, or that perhaps, the new hardware available in the nine years since xp made its entrance, made the xp incompatible. I mean, can your xp recognize your cpu or chipset?
Perhaps the only possible method would be to run xpfrom a virtual machine.
Judging from your system configuration, virtualization wouldn't be that bad, it would run pretty well

Thus, my suggestion would be to install windows 7 and simply run it from XP Mode. For that, you will need a copy of windows 7 professional or ultimate (tad bit more expensive than home premium). Or you can buy a home premium and install something like virtualbox.
Seriously xp, is more trouble than its worth. Even if you manage to install it, you will need a TON of times getting all the
drivers for it. Xp doesn't have generic or native
drivers so you will need a flash drive to store the
drivers lol. Windows 7, however, has generic drivers for almost all modern hardware, so you will ahve a better "out of box" experience.
I hope I helped~!