This article explains how to use the Recovery Console in Windows XP to detect and recover data from bad sectors on the hard drive.
How do I run CHKDSK to fix bad sectors?
Follow these simple steps to find and recover data from bad sectors on your hard drive using Recovery Console.
Get to know the Windows XP Recovery Console, Windows XP's advanced diagnostics mode with special tools to help you find and repair bad sectors.
In short: boot from the XP CD and press R when the installation starts.