unless you already use linux you're going to have lots of questions going that route...
can you set your computer to boot that hdd and if so do you get the same ntldr error?
go to the command prompt at the root of your cd (ie: "d:\") and type:
dir /a *.* > dir.txt
And post the text from dir.txt
from that we can tell if your cd needs to "install" on your hdd or not
in case its really just a simple file missing (unlikely)
http://gwarble.com/NTLDR
EDIT to answer last question: do the same as above but on the root of the hdd, or:
dir /a E:\*.* > dir.txt
where "E:" is the hdd in question...
edit: does the megatouch have a usb port? can it be set to boot from it?
will your computer boot to the disc and if so what do you see? do you have a windows xp cd?
is this a new hdd? if original, did you format the existing partition only or clear the partition table and create a new partition?