Hi there rubsley,
It would be really useful if you could provide some more information on the issue you are facing.
What do you mean by went bad? It had some bad sectors on it or it became unrecognized? So you've cloned that drive right? Why would you boot from Win XP disk as you've already cloned your old HDD?
Do you get this error when you attach the new HDD? Generally, this would indicate that your HDD is failing. So, it may be good idea test the HDD with some HDD testing tool for DOS mode.
Cheers,
D_Know_WD