Yes, the hard drive could be bad or intermittent, but...
You say you've already installed XP on this drive? How did you do this without installing drivers? If this is a boot drive from another PC, it probably won't work!
Have you set it up as the boot drive? Drive configuration and bios recognize the drive? Did you format the drive first? What format are you using (NTFS, FAT32, etc.)?
Dell