Google "slipstream windows xp" you should be able to figure out how to create a bootable CD from that as well as updating your XP CD with the latest service packs and drivers. I think if you slipstream SP3 you shouldn't need additional drivers for SATA, but I'm not 100% sure if that's true for all setups.
As far as the memory, the easiest way to tell if it's borked is to remove all memory except the stick you think is bad and try to boot up. Doesn't boot, memory mighta got fried. Boots up ok, maybe the BIOS is having some problem with dual channel/single channel setup on the memory with multiple sticks.
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