Hi AT and Britec, thank you both for your posts in response to my damn frustrating issue.
Firstly AT, I removed the Cmos to attempt to clear the ADMIN password in the BIOS as you suggested. The result is that there is no windows password stored in my second harddrive Windows operating system, within the User Account part of Windows. This hard drive is fine and currently only allowing me to use the PC normally, but I am still unable to start up my Windows XP on the first hard drive that contains all my photos, videos and files etc. (Which I havent backed up for quite some time) Doh, Silly me eh. Lesson learned

My Issues Britec is with the Recovery console part in your instructions.
1: I have a bootable Windows XP CD and I proceed to boot from the CD...
2: I enter the option of R for the Recovery console... All Good
3: I enter option 1, which is C:Windows
4: Now here is where the issue is...... When prompted for the Administrator password... Bearing in mind that I have removed the password (apparently) within the BIOS settings, when I hit ENTER (for no password) the damn PC advises INVALID PASSWORD!
How can this happen, if I have removed the ADMIN password within the BIOS??
My Bios settings even advise passwords not set when i enter set up?
There are no other passwords set at all (apparently) within the password section of the BIOS.
I have hunted the internet for Bios password reset on a Dell Dimension and they advise to change the jumper from pins 1&2, to 2&3.
Thats all great, but my MOB only has 2 pins in total?? I have tried removing the jumper completely, but still no joy!
Dell support have been completely useless in assisting on this.
I would be so grateful if you know why this may be happening and get me passed this bit to continue with the tutorial you kindly posted, as I know I have a Boot.INI error and the HAL.DLL error and I could certainly fix it from your instructions.
If you need any PC specs, or additional info, please ask.
Thank you so much in advance.
Steve