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When I run my XP installation disk I receive an error...

Please let me know if there is anything that I am missing...
I have attached my log and photo. the error pops up around the time to partition the drive in the windows XP setup.

Note: I am tiring to install Windows XP Pro 2002
any advice would be appreciated...

You don't have enough memory:

00:00:02.503957 Host RAM: 1606MB total, 767MB available
00:00:02.994388   RamSize         <integer> = 0x0000000030200000 (807 403 520, 770 MB)
00:00:02.995556   VRamSize         <integer> = 0x0000000001000000 (16 777 216, 16 MB)

You're asking for 770+16=786 MB, but you only have 767MB available. I would lower it to 192 (per the suggestion from the template) or 256 MB of RAM.