Windows XP Pro - Flashing Cursor on Boot

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I've seen some similar posts, but the suggested corrective actions don't seem to work in my case. Here's my situation:

I have a Dell Inspiron XPS Gen 2 laptop running WIndows XP Pro, About a week ago, it would no longer boot. After a restart, the Dell startup screen would appear, then at the point where Windows would normally load, the cursor would just flash in the top right corner over a black screen (no beeps, no blue screen, etc.).

I tried using the Recovery mode on the Windows XP Pro install CD. I ran chkdsk and all looked good. I ran fixmbr and fixboot, but still no luck. I then tried a fresh install of Windows - still no luck.

Any ideas on this? If possible, I'd like to avoid a reformat and recreate of the partition(s).

Not sure if it matters, but this drive was installed about a month ago. The original drive was 60GB - this one is larger, and shows 137GB in a single partition.
 
Boot with your Windows CD
Go to the first R prompt
Select 1 then select Enter
On the recovery console, type: chkdsk c: /r (or chkdsk c: /f)
 
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