The partition table and MBR are probably OK. I’m guessing the drivers are not compatible with the virtual machine.
Get a Windows XP disc that is working – I’m guessing you can repair without the original. You might get a substitute from the place where you bought your computer or loan it from a friend.
The Windows 7 blue screen error is usually caused by hardware drivers problems.
I have seen this many times when converting Windows XP & 7 using vCenter Converter. Though the easy solution is that vCenter converter now includes a Configure machine option that can help fix this problem with ease in no time.
If you have no problem with using VMware Workstation or VMware Player then you can use that. For more info on this you can check my post at: vCenter Converter & Windows 7 7B error