You mentioned every time you boot your system, the boot menu shows two "Ms Win Xp", and
you need to choose one to boot into the working system.
This kind of choice when it happens has only got to do with boot.ini file, which is
present in C:\
Instead of checking the boot.ini from msconfig, do this as follows:
0)Open the Win explorer and see, in which drive you are i.e., C:\ or D:\
1)open Win explorer, be in c:\ (If you are sure)
2)Click Tools\Folder option\View\
3)Uncheck-Hide protected Operating system files(Recommended) and choose the radio
button- Show hidden files and folders.
4)Back to c:\(Window Explorer) ( If your Windows OS is in C:\ continue with step 5)
5)There is a file called boot.ini, open it.
6)There is this line called
multi(0)disk(0)rdisk(0)partition(1)\WINDOWS="Microsoft Windows XP Professional" /noexecute=optin /fastdetect
7)If and only if you are sure that your working Xp partition is c:\
There must be another line.
multi(0)disk(0)rdisk(0)partition(2)\WINDOWS="Microsoft Windows XP Professional" /noexecute=optin /fastdetect
8)Delete that line (Step 7).
9)Save the boot.ini file and uncheck every thing you did in Step 3)
10)Restart and see the results.
Report back if it worked.
P.S: To be absolutely sure that your working Winxp is in C:\, check to see the programs you installed in Program files.