Since the drive works and you have a functioning computer, you migth as well try dropping in the hard drive into the working PC and firing it up-if the only problem with the old machine was other hardware failures, it just might work. Worst case it would fail and then you could try booting off the XP install disk and running a Repair and, if that failed, you could just install XP fresh on the drive in a new directory.
Or just drop the old drive into the machine you planning to use the 60GB worth of data on and copy it directly...why all this effort of pulling it to an external USB hard drive so you can transfer it to another machine?