Can i run a laptob on one hdd usb-connected?

Hello,
my hdd is broken and i tried to use the hdd of my old laptop. i have a usb case and connected it to my laptop and it found it but couldnt resume windows. someone told me that i cant use an installed version of windows xp on a different laptop so i reinstaled windows xp on the hdd through the usb.
but its still not working. i quick resarted xp and it copied all the data from all 5 cds. but when i restart the computer the xp sign comes up but it doesnt boot properly. it says resume windows normally (or in safe mode etc etc.) and when i clck yes it restarts again and the same thing comes up.
coud the poblem be that i have connected the hdd through the usb and didnt connect it from the bottom side? in bios it still cant detect any hdd. maybe because the only hdd that is connected to the comp is the one through usb.

can this problem be solved if i plug it properly where the damaged hdd used to be or would it be the same as connecting it via usb?
i changed the boot order too. to usb.
any thoughts?
thanks alot!

and if i was to buy a new hdd what model would it have to be? can i use any hdd that has the same connection as the broken hdd had?
thanks alot