I've just used the migration tool to transfer a dual boot XPpro & Windows 8 system from an old hard drive to a nice new 180Gb Intel SSD 330.
After the migration has completed Windows 8 works as expected.
However, if I select XPpro on the dual boor screen it starts to load and then get's itself in a loop at the point where the Windows chime plays - keeps replaying the windows chime after about a 5 sec delay while displaying the same win xp starting screen.
I'm guessing now, but this makes me think that the Windows cannot find it's files on the C: drive. When Windows boots, it will boot off the "boot" partition that the BIOS/UEFI started the boot process on. After drivers are loaded and some init done, Windows needs to load files from the the partition it has mounted as C:.
When you boot XP on the new drive, it may be mounting the XP partition as non-C: because it's finding it for the first time or because it saw it prior to you capturing the image from the old drive and assigned a non-C: drive letter.