1. Error Message? It would be helpful to know what the current symptoms/error message is when you try to boot from the hard drive? Knowing how far you get in the boot/startup process helps identify where the problem occurs.
2. Since the boot floppy works; then regarding the hard drive it is my guess:
a. The Master Boot Record (MBR) structure is ok because your system is able to access the hard drive and read files on your boot volume (containing Windows XP operating system).
b. The primary partition containing your system volume (C:?) may not be set "active" in the partition table of the MBR. I'm wondering whether it got cleared by the Ghost program. During startup you look for the system boot files in the "active" primary partition. If it isn't set "active" or the appropriate system files aren't there, the hard drive will not boot.
c. The Boot Record on the "active" primary partition (system volume c:) may be damaged/corrupt or no longer pointing to correct location of NTLDR.
d. NTLDR, NTDetect.com, Boot.ini issue. Any one of these files could be missing, damaged, corrupt or in the case of Boot.ini; misconfigured. Sounds like your friend probably checked for this or replaced them with "fresh" copies.
3. Start by determining whether the primary partition containing the system volume (logical c: drive) is set "active". Use your boot floppy to boot into Windows XP.
What is the logical structure (division into logical drives) of your hard drive?
If more than one logical drive, what does each logical drive contain (ghost, windows)?
Is the system volume, logical c: drive, a "primary" partition and is it set "active"?
Is it the only primary partition that is set active? If there are other primary partitions are they also set "active" (they shouldn't be)?
Use the "Disk Management" tool to do this (hope Windows XP Home Edition has it). One way to access tool is:
a. Left click on "Start" button, start menu is displayed.
b. Right click on "My Computer" item, a drop down menu should appear.
c. Left click on "Manage" item, "Computer Management" window should open.
d. Under "Storage" subcategory, left click on "Disk Management". Right hand pane should include all your hard drives with partition/volume.
e. Find the system volume on the bottom half of the right pane. Is it "color" coded as a primary partition (dark blue, I believe)?
f. Right click within the system volume. From context menu you should see something like "Mark active partition". If you're on a primary partition and the item is grayed out, I think it's currently set active.
4. XpQuick. And thanks for the "tip" about xpquick. I'll have to take a closer look at it.