So your format and setup went ok on the other PC? I ask because some drives have to be initially setup and formatted/set active by the manufacturer tools. But if you formatted and could use the disk on another system then this would not be the case here.

Please post me a image of your Integrated peripherals BIOS page

Where do you have your CD/DVD player connected on the board as well?

Is this a known good XP install disk? I mean have you used it lately and did you burn it yourself? If so or it is old you may want to burn a New one and Burn on the SLOWEST Settings.

Here is MS page about 0x0000007B
Advanced troubleshooting for "Stop 0x0000007B" errors in Windows XP