It means that it is trying to read or write to your disk and it is unable to for some obscure reason. If I received this error, I would assume some corruption is present in the file system. If that's the case, you should perform a Disk Check (chkdsk) operation with the /R or "Repair" option.
"How to perform Disk Error Checking in Windows XP"
< http://support.microsoft.com/kb/315265 >
Note that the actual check operation will occur at next reboot, is performed before Windows fully loads, can't be interrupted, and can take upwards of a couple of hours to perform (depending on disk size and amount and type of corruption) -- so do this when you won't need your machine for a while. Note that, while rare, this operation has the potential to totally trash a hard drive, so a backup of important files first is prudent.
HTH,
JW