The Ultimate Computer Problem~

[VexSilver]

No. The clue is BOOTMGR is not an XP vocabulary item
Quick answer. Try another Hard drive. The problem will go away or I will eat crow. Trust me on this.   
Alternate answer. Get a copy of GPARTED. It is a bookable CD. Use it to delete any and all partitions. Then create a new partition that uses only 7GB of the drive.Format it as NTFS. And mark the partition active and MSDOS type.

Unless the XP CD has been damaged, that should solve the problem.

http://gparted.sourceforge.net/livecd.php

Hey I wanted to say something before I tried what you said.  I found another harddrive right, well I put it in and that BOOTMGR left.  Now what I see is that screen that tells me:

Safe Mode
Safe Mode with Networking
Safe mode with command Prompt

Last known good configuration (your most recent settings that worked)

Start windows normally.

Now the problem is that when I press enter on safe more or last known good configuration and start windows normally, it just resets the computer back to the beginning.

This feels like a break through.  Should I try something you suggested now or is there something else that can be done.  By the way I tried the XP disk again on this new harddrive and I still get those weird something is corrupted errors.  The XP disk is kinda scuffed.

Should I try to look for another XP disk?  I wonder if the disk is the cause of the File is corrupt/not loaded/missing errors.

[Fed]

Should I try to look for another XP disk?

Yes, you need a genuine Microsoft full version XP disk.
Boot to the disk, delete all the partitions & start fresh.

Is the disk you're using now a copy/pirated or OEM disk?

[Geek-9pm]

The XP disk is kinda scuffed.

Well...
IF it is a legit disk, and you are the owner, do this:
Get one of those CD surface cleaners they sell in department stores. Read instructions and do as it says, clean the surface carefully.
Next, make a direct copy onto a good CD-R on a reliable PC with a good CD Burner.
Now the pristine  CD copy of XP should work fine and not report any file errors.
It is OK to make a backup copy of a Copyright disc in this case. Keep original.

[VexSilver]

Yes, you need a genuine Microsoft full version XP disk.
Boot to the disk, delete all the partitions & start fresh.

Is the disk you're using now a copy/pirated or OEM disk?

Well when I was saying Xp disk I kinda ment it.  It is an xp disk, but I found it in a box with out a cover so it is scuffed.  I'll see if I can borrow another xp disk from a friend if that'd work or see if she has a disk cleaner.

Oh man if this works I'ma be one happy camper.