If I'm interpreting correctly...that hard drive came from a different system. Is that correct?
<<Running chkdsk off of original Microsoft DVD>>
XP was not issued on DVDs, but on CDs. Vista and Win 7 are larger and were issued on DVDs.
<<Ran Recovery from original XP SP2 DVD - BSOD during chkdisk IRQL NOT LESS OR EQUAL - chkdsk never gets past 50%>>
If the system installed reflects SP3...then you cannot use a disk reflecting SP2...to repair an SP3 install. The best thing that you could do would be to uninstall SP3, then use the SP2 disk to attempt a repirs install. Or...create a new install CD by slipstreaming SP3 into the contents of the SP2 install disk.
Slipstreaming Windows XP To Create a Bootable Windows XP CD or DVD - http://www.bleepingcomputer.com/tutorials/tutorial154.html