Windows XP installation problem..this disk does not contain a Windows XP-compatible partition error?

after i start the setup the following comes... XP Home Edition Setup The following list shows the existing partitions and unpartitioned space on this computer. Use the UP and DOWN ARROW keys to select an item in the list. To set up Windows XP on the selected item, press ENTER. To create a partition in... show more after i start the setup the following comes...

XP Home Edition Setup

The following list shows the existing partitions and unpartitioned space on this computer.

Use the UP and DOWN ARROW keys to select an item in the list.

To set up Windows XP on the selected item, press ENTER.
To create a partition in the unpartitioned space, press C.
To delete the selected partition, press D.

76317 MB Disk 0 at Id1 on bus 0 on atapi [MBR]
unpatition space - 8mb
C: Partition1[unknown] 9554 mb
D: Partition2[unknown] 19101mb
E: Partition3[FAT32] 47654mb

If I press ENTER to install (in C: and D:), this screen appears...

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Windows XP Home Edition Setup

To install Windows XP on the partition you selected, Setup must write some startup files to the following disk:

76317 MB Disk 0 at Id1 on bus 0 on atapi [MBR]

However, this disk does not contain a Windows XP-compatible partition.

To continue installing Windows XP, retrn to the partition selection screen and create a Windows XP-compatible partition on the disk above. If there is no free space on the disk, delete an existing partition, and then create a new one.

To return to the partition selection screen, press ENTER.

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"Now i have deleted and created c: still the same...the same problem is with D: and E:(not deleted)"
"i do not want to delete E as it contains important files"
plz help...
Kindly be more elaborate as i m a new to these things...
your help is very much appreciated
thankyou
Update: the solutions given by first 4 isnt working..like there is no create option when the c: is already created; and my system is not at all booting up so how would i run an installation repair tool over it.....
4 answers 4