Installing XP on a Compaq laptop

I can't install XP (Professional 32 bit) on this Compaq laptop. The laptop had Vista Basic, and at one point could not go past the loading bar. I have a XP disc and want to install it. When I do it goes up to the beginning setup screen, where it ask what you want to do: i.e. Reformat, Install, Create parition, etc. But when I tried it with other computers it worked (with my Toshiba Satellite Pro), but with this it says:

"Unknown disc"

"There is no disk in this drive"

http://img692.imageshack.us/img692/1...ndiscissue.jpg

Then it get a blue screen. "SETUPDD.SYS" error.