BleepingComputer.com: Flight computer cannot access OS correctly from CFC

The company I work for is trying to build a computer to store and manage flight data/diagnostics and recall flight programming. It needed to be stout, so there's no chance using a HDD. Here's the build:

• CPU: Parvus CPU-1474-AO SBC w/ Intel Celeron M
  
• OS: Windows XP
  
• Bus: PC/104-Plus (PCI)
  
• RAM: 512MB DDR onbd
  
• CFC Adapter: PRV-1220
  
• Memory: SanDisk Ultra II 8 GB CompactFlash
  
• BIOS 6.1F (1MB Flash EPROM)

The problem arises when the system is loading, and once it passes the BIOS screen, an error displays (black screen):
Disk error.
Press any key to restart.

When I press a key, it restarts, but immediately returns to the error screen. The system works as far as getting to the boot screen and BIOS access. Once it restarts or XP is loaded onto the CFC again, it removes any files/cached data from the CompactFlash card. We've tried several options based on the guidance from Parvus. They suggested it may be due the fact that the SanDisk CFC isn't "industrial grade with (sic) single layer and 85C to -40C operating range". Other than quoting us for another card, they give us no other aid other than purchasing a pre-made kit which will not work for our intended application. I've ensured that the system boots from the CFC first in BIOS, and that XP has been installed on it (via a USB CD-ROM), but nothing else seems to work. Our end goal is to access the OS like any other embedded computer. Are there any hardware issues (like the fact the SanDisk is multi-layer) that may be the problem, and if so, what do you recommend we do to get XP to load correctly?

Do you have enough room for a 2.5" solidstate laptop hdd?

Good mourning. Panasonic Tough Book might be what you are looking for. Some built to U.S. Military standards. Some with SSD's. They are up their in price.

Are you installing the consumer version of XP? The description of the SBC indicates embedded XP is expected:

http://www.parvus.com/product/overview.aspx?prod=CPU-1474

"This x86 CPU module is compatible with Linux, Windows XP Embedded..."