Can't detect Disk C

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I use Dell laptop studio 1537. I want to install XP so i downloaded ParttitionMagic and open it, immediately it said there were some information about disk C that wasn't correct and if i wanted to fix them. I chose 'yes', there were two such Messages.
A while later, i met the Blue Screen of Death and it automatically restarted.

Now my laptop can't boot to OS, it just splashes a blue screen and automtically restarts...I have a CD for reinstalling Windows Vista and i put it in, chose Repair, it led me to a dialog to select a OS, but there weren't any OS in the list!!. When i checked the disks, there was only disk C and that was my original disk D!

My Upgrade option in the CD was disabled so i chose 'Install a clean copy of Windows Vista". Another dialog appeared to choose a Disk to Install the Windows to. There were two Disks, labeled 'Recovery' and 'Unlocated partition' or something. I can't neither choose 'Unlocated partition' nor create a new disk from it while my disk 'Recovery'(Disk D) is not large enough.
I really need help, if you know something please tell me, thanks in advance!
 
You need to format the "unallocated" partition, and install XP on that partition. Once you get the laptop up and running again, you can think about Vista. Having a dual boot XP Vista on a laptop is a waste of disc space. I have Vista and Windows 7 on two separate drives on my desktop
 
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