<<My question is, will deleting my main and only partition (C:\) and reinstalling Windows XP hopefully resolve my issue?>>
That depends on what the issue is.
You mention having two hard drives, each with XP installed on it.
You mention a BIOS screen hang, which can an indicator of damaged hardware, bad cables, faulty connectors, a bad CMOS battery....the issue is not clear-cut, IMO.
You don't indicate what medium was used to install XP or what your system manufacturer and model might be.
<<I tried reinstalling Windows XP on the new one, but it didn't work.>>
What...did not "work"...the CD, the optical drive, the installation effort? What error messages did you receive onscreen?
We need more pieces of the puzzle, IMO.Ntldr Is Missing