Is there any way I can install XP onto the hard drive by using it as a slave in another machine and then puting it back into the original machine. Likewise if I set the hard drive as a master in a different machine and re installed XP usinfg this disk?
Not really as drivers for motherboard will be wrong and will probably not boot when put in other machine.
Try your recovery right from the start agin and see if it sticks at the same place.
installing on another machine can be done with difficulty but you will ned to disable some drivers before placing in new machine.Drivers to disable BEFORE changing motherboard