On what point of the installation do you get the error?
Is it when it restarts? I am not familiar with such an error, but it looks to me that xp is not able to find your cd-drive after restarting.
Have you tried to copy the XP files first to your harddisk, and then try to install from there. If not. Try this, it might work.
How to do this:
(Best done on a clean formatted disc)
-restart your computer in dos and go to the i386 map on the xp cd.
-Then type: winnt /rx tempfiles (with this command the files needed for installation will be copied to a directory "tempfiles". After installation this map will automatically be removed. The directory name tempfiles is just an example i use. You can give it any name you want)
When all files are copied, the setup will start and take through the rest.
hope it will be of help