Have you looked at trying to fix maybe a corrupted Master Boot Record?
Before doing this I personally would take the drive out, put it in my HDD Enclosure and plug it into another computer via USB and get that infection off the drive. You can go to NewEgg to pick one up for about $26.00.
http://www.newegg.com/Product/Product.aspx?Item=N82E16817193047This unit will hold both IDE and SATA drives.
Of course if you don't need the data why not stick in your XP CD and just wipe that drive out with a format and fresh copy.
To fix the MBR you can follow these steps:
Put in your XP CD and boot from it. When the prompt "Press any key to boot from CD". You'll go into your Recovery Console.
Press R to go to Recovery Console when prompted.
On the next screen just select the number in which you want to work on, that is if you have more than one OS.
Next you'll need to know the Admin password. If you don't know it many people never put one in so just hit enter if it's not known.
After this you should be at the command prompt and you can run FIXMBR. It should not take but a moment and when done just remove your CD and type in "Exit" which will reboot the system and hopefully the drive will be seen.