Hi,
This is because the Virtual Machine is by default created with a virtual scsi drive with an LSI adapter and the LSI driver is not by default recognized in windows XP SP2.
You basically have 2 options:
you can download the LSI driver from http://www.vmware.com/download/ws/drivers_tools.html
or you can change the virtual disk from LSI over to Buslogic and use the buslogic drivers which are part of Windows XP.
see also:
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Wil
Here's a link to a nice step by step guide to resolve your problem.
http://virtrix.blogspot.com/2007/09/vmware-installing-windows-xp-on-esx.html
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Wil
Thks wila for the solution , i will try on the next working day 
But im still in doubt , according to this link u gave me ,http://virtrix.blogspot.com/2007/09/vmware-installing-windows-xp-on-esx.html, i need to upload Window XP.iso file in order to install? Would i be able to use Window XP installation cd to install instead of the iso file? And does it matter whether i choose a 64bits or 32 bits Window XP during the installation in the VM?
A CD install is the same thing as an .iso install except that the .iso install will be a bit mroe performant as it can be stored local to the host. It's not a relevant distinction really.
As for 64bits vs. 32bits, I don't think it will make a difference in regards with the storage drivers, but I haven't installed the 64 bits myself yet. From what I've heard from a VMware developer was that the 64bits has better support for being virtualized as it is much newer. So you should get better performance using that. Provided of course that your host supports 64 bits 
A disadvantage of using the 64 bits might be that some software will have trouble getting installed, but most software should work just fine.
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Wil