Netbook XP install

Hello, Im trying to install a copy of windows xp on a netbook for a friend. Im not sure what exactly hapened to it, he just said that it "crashed". I created a bootable usb drive with a copy of xp on it and everything seems to be working fine with that. When I go through the steps to install windows xp, and get to the point where its going to actually load the OS I get a message that says (setup had determined that the drive C: is corrupted and cannot be repaired) Does this mean that the hard drive fried and I need to get a new hard drive? or what steps should a take at this point? Thanks in advance to anyone that replies.