Okay - First part of this will sort out what I think you're trying to say:
Service Pack 2 XP machine that you tried to reinstall XP on - but you have an SP1 XP CD so that won't work. Tried to do via other means and not working.
Gotcha. First thing you'll need is to check BIOS and ensure the boot order is right - common mistake to assume that just having the CD in there will cause the 'override'. I can only guess that you may have tried this so I'll move on to the next point.
If the above did not work and you are stuck with an otherwise blank drive, hunt www.bootdisk.com for a Windows ME bootdisk. Start the computer with CD-ROM support. Once you know the drive letter (I will use X: in this demo), you will need to run the command:
X:\i386\winnt.exe
Of course there is the issue with SMARTDRV and how this method will take longer if SMARTDRV is not loaded - but if you have an issue with making the device primary, this is the only viable solution. You can always search for a copy of the file SMARTDRV.exe and copy it to the boot floppy you make. Then, before launching the above command, type at the A:\ prompt:
A:\smartdrv.exe
That will activate SMARTDRV and make the process go faster.
Let me know if you need a more detailed tutorial on any of this.