I'd say to give it a try first, and THEN if it doesn't work go for nuking it from orbit.
But here's the deal: I think that there's just a glitch in the disk record of what state Windows is supposed to be in, and you can either see that's true or not pretty simply. If you installed the drivers for XP, you have a Control Panel app called "Startup Disk" which is similar to the OS X preferences pane called "Startup Disk". It allows you to change the default boot OS. And you should be able to get there by booting into Safe Mode: As soon as it starts to boot, press and hold F8. You'll get a screen called "Windows Advanced Options Menu" from which you choose "Safe Mode" (and JUST Safe Mode). Go to the Control Panel, open the Startup Disk applet and choose OS X. Now back out of everything and close Windows, choosing "Restart". The computer should restart in OS X. Next step: restart again, and this time hold down the Option key when you hear the boot chime. You'll get the option to select OS X or Windows, so choose Windows. My bet is that when you do this, Windows will start normally and will do so from then on.
If you really do need to do a repair install, here's how:
Boot from your XP install disc and choose to install XP. DO NOT press 'R" for the Recovery Console! That's a real PITA that takes some serious experience to get to work right. So you choose "Install" and then when you get to the screen that asks what partition to install on, THERE you can select to "repair an installation." Let it run and go through everything it wants to do. When it's finished (it'll tell you it's done by rebooting into XP) you can poke around to see whether or not everything works.