You should find out if is is a SATA drive first...
RC will/may not behave on a SATA drive unless you adjust the BIOS, then boot into the RC.
See? If the MS Answers forums would ask the questions I keep begging them to add to the Ask a question dialogue, you'd be done with this by now.
Then it sounds like the OP needs to work on the F8 button a little more.
From Jose KB#2417 (not enough Boot Options):
If there is a problem booting, XP is configured to automatically try to boot again and you can get stuck in a loop of just being unable to get past the boot options screen or none of the boot options you choose will work.
Sometimes when XP has a problem starting or crashes and tries to start again, it will give you a "short" menu of boot options and none of them will seem to be the right ones to get your system going again. You've tried them all!
It may look something like this:
safe mode
safe mode with command prompt
safe mode with networking
last known good configuration
start normally
The options resemble the XP Advanced Boot Options menu, but the one option you need (Disable automatic restart on system failure) is not offered because XP has gone too far along in the boot process and offers you a limited number of boot options.
If that is the case, you must invoke the Advanced Boot Options menu yourself until you do see the option:
Disable automatic restart on system failure
When you do get to the correct XP Advanced Options Boot menu you want to see, it has options on it like these:
Safe Mode
Safe Mode with Networking
Safe Mode with Command Prompt
Enable Boot Logging
Enable VGA mode
Last Known Good Configuration (your most recent settings that worked)
Directory Services Restore Mode (Windows domain controllers only)
Debugging Mode
Disable automatic restart on system failure
Start Windows Normally
Reboot
Return to OS Choices Menu
What you need to choose from that menu is the option:
Disable automatic restart on system failure
Then if XP fails to boot normally, you will see an error screen with information and clues regarding the problem and then you can decide what to do next.
If you do not see the Disable automatic restart on system failure option, you need to reset your system and start tapping the F8 key on the keyboard until you do see the Disable automatic restart on system failure option.
If you miss the F8 window of opportunity, you need to try again and start tapping the F8 key with more urgency (sooner and more frequently) until you do see Disable automatic restart on system failure, then select it.
You need to keep trying the F8 menu until you do see Disable automatic restart on system failure option, and select it.
If your system is experiencing a Blue Screen of Death (BSOD), we need to know what the screen says:
Here is a BSOD example showing information you need to provide:
http://techrepublic.com.com/i/tr/downloads/images/bsod_a.jpg
Send the information pointed to with the red arrows (3-4 lines total).
Send the entire *** STOP message line since there are clues in the 4 parameters.
If it looks like there is some kind of file name listed under the STOP message, send that line too.
Skip the boring text unless it looks important to you. We know what a BSOD looks like, we need to know what your BSOD looks like.