<<i observed that is prompts an error on the kboard being not detected or something like not compatible. .>
The exact error messages are more helpful. I think you need to do several things. A P3 866 is not that ancient and perhaps that machine has some more good years in it.
Remove the CMOS battery to clear the BIOS for 10 minutes, then reinstall.
Use a PS/2 keyboard and mouse for this drill.
remove and reseat all cards and RAM.
Do you have a legal XP CD? It may be time to reinsall. If you have any important data on the drive back it up.
Again, posting details on motherboard, RAM, etc. is helpful.
WIndows will not fix bad hardware, but you may have other configuration problems.