How Can install Windows XP on a Windows 7 PC using dual boot?

I’m afraid you will have to reformat your entire Hard Drive beforehand.
Windows 7 uses the GUID Partition Table by default wherein Windows XP only supports Master Boot Record. Therefor when you try to install Windows XP it can’t find a partition to install to.
If you decide to reformat I strongly suggest to install Windows XP first and then Windows 7 afterwards. Windows 7 supports dual boot out of the box and will add both systems to the boot menu wherein Windows XP would replace the boot loader [which means you would have to manually reinstall it and add both boot options].

one more: Hello, the best method is to install from older to newer operating system.  In your case, you have to do it from newer to older.  The following link will explain everything you need  and have to do to succeed:
http://neosmart.net/wiki/display/EBCD/Installing+XP+After+Vista+or+7
Hello, these are links that deal on how to dual boot xp with vista/7:
http://www.sevenforums.com/tutorials/8057-dual-boot-installation-windows-7-xp.html
http://lifehacker.com/5126781/how-to-dual-boot-windows-7-with-xp-or-vista
http://www.techspot.com/guides/143-dual-boot-windows7/
There error you are getting can be solved by turning the SATA configuration to IDE in BIOS, if the option is there.  Downside with setting to IDEA is that you will loose some performance with the drive.  Or as Mike suggested, download the ACHI drivers for your system to a flashdrive/cd and installing them by using F6 button when installing XP.