Is my disk dead?

[toffeemad]

I've just had to rebuild my dad's PC as it would not boot from the hard disk. (the memory also failed on the same day) It POST's fine but comes up with a screen saying Windows did not start properly and gives all the advanced startup options. Whichever option I select the computer starts the POST again and stops at the same screen. I have replaced the (SATA) hard drive and installed XP on an old drive. When I tried to install the HD as a secondary drive the same problem happens and the PC get's caught in a loop. Is its possible to install the drive in a USB caddy so I can at least inspect it to see what's wrong? Its a Seagate Barracuda BTW.

 

[toffeemad]

I've replaced the Mobo and am pretty sure it's fine. The HD is SATA so cant put on same controller as Optical Drive. Does the diagnostic tool work without booting into Windows as never used one before?