There may be another way...........
It may be worth starting up using the CD and entering the Recovery Console to run a disk check.
Have a look at this link
Recovery Console - How to Enter Windows XP Recovery Console
It shows you how to get into the Recovery Console.
Once there, type chkdsk /r (there is a space between the k and /r bit)
Leave it until finished, then type exit, press return.
That will run a full disk check and repair.
Can you now get into Safe Mode?
I've had a look at the spec of your laptop and the Repair option may need you to add the SATA drivers during bootup.
Just want to clarify a couple of things before we go further with that.
The CD you are using, is it the Fujitsu Recovery CD, or do you have an XP disk - it may make a difference to the install routine.
Also, does your laptop have a floppy drive - probably not but need to be sure. Lastly, were there any floppy disks that came with your lappy?
If all that fails, you are back to Wolfey's external drive case........