Hmm.. so the cloning didn't work eh!! Blaming it on Symantec? They're going downhill anyways. Heard McAfee is taking over, coz' they're better Heuristic scanners.Anyways, setting all that aside:

As far as I can say, it's either the user error, or the Disk error, than the application itself. User error, because there might be a step or two you might have missed ( I do that all the time !)

Disk Error, because certain sector(s) of the disk might have been damaged. I agree, you can still install XP on the same disk through CD.. -- but remember, cloning is bringing lot more than just the OS applications and settings, which require more disk space and your xxxx000xx sector might have been damaged, and the startup application could have been stuck there.

So, here's what my suggestion goes like:
Since you have your Original Disk "c" on hand, run the Ghosting one more time and see how that goes.

If problem persists, go for one of the two choices:
-Use a different Software (if you think it's the Symantec that's thumbing you down)
-Buy a new generic disk and copy the image to it.

OR
-Set that 'E' disk as a Secondary Master, and drag n' drop the files/folder from C:\ to it. At least you can get your data transferred, even though the installed applications don't get transferred !

OR
-If you happen to be a 'Piracy supporter', grab a commercial backup tool, and copy the 'binaries' of C:\ and Push 'em to E:\

Hope that helps -- Sorry, I'm not a Hardware Zealot anymore.

G'Luck Slash !!
~@~