You can't install XP in this way.
Changing the major hardware components on a system requires XP reactivation and you'd be best off running a clean install of XP.
If you have a working floppy drive on the system, you could put the hard drive into the Thinkpad, format it as FAT 32, copy the i386 folder from your Windows XP CD ROM to the hard drive, put the hard drive back into the HP, boot from a Windows 98 startup floppy and run a manual install.
This is a bit fiddly since you have to run a few command switches from the floppy for reliable installation and you also have to copy SMARTDRV.EXE from the Windows XP CD to the floppy. With XP (and Windows 2000) you have to manually start SmartDrive from the floppy otherwise running an install from a DOS prompt will take about six or eight hours or so.
I posted a brief description of how to do this on another thread: click here
Basically all you've done is installed an operating system to one platofmr of XYZ hardware then moved the hard disk to another machine that has ABC hardware. The oerating system hasn't the faintest idea where it is or how to work with thr different hardware setup.
There's a good article on a rejigged Windows 2000 install that can be applied to XP on Paul Thurrott's excellent website:
It describes how to start stmartdrive manually and run an install.