Boot errors with black screens are commonly caused by 3 things with XP:
1) Hard drive issues (not real common)
2) Corrupted boot sectors (the repair should've fixed this)
3) Corrupted/missing video drivers (most common)
I would guess that the system didn't come with XP Pro on it (XP Home seems to be the choice of OS when only 128 mB of RAM is installed). Are you using the Dell CD's that came with the computer? If so, contact Dell for a solution (I did this not long ago with Win98 and Dell was very helpful). The sticker on the case should say if it's XP Pro or XP Home also - and, as you've found out, they're not interchangeable!
My browser caused a flood of traffic, sio my IP address was banned. Hope to fix it soon. Will get back to posting as soon as Im able. - John
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