That error message which includes "The procedure entry point strncpy s could not be located in the dynamic link library msvcrt.dll" may point to the incorrect version of msvcrt.dll being used, and the correct version would be needed.
There is a similar error message discussed by Microsoft here; http://support.microsoft.com/kb/324762 although the entry point is different.
But that would be strange if you have reinstalled XP 3 times and you still get this problem and error message. So tell us more about this XP Setup CD. Where did you get it from?
How did you reinstall XP each time?