When you boot from the disk, Windows XP will load all drivers necessary to run the computer, but it doesn't actually install anything on your hard drive. After that, it asks you to either repair or format the hard drive and install. If you boot from the CD, you will be able to see which driver it gets confused with, and it will not do any damage to what is on your hard drive (if you manage to get to the end where it asks you to format, pick "exit" until you are actually ready to install XP).

Then, tell us what errors you get.