We have resolved the issue:) if anybody have the same problem please see below how this can be solwed
<template id="xxx" name=" Disk Partition ]" version="4">
<description>Master XP scripted install</description>
<preboot-os>WindowsPE</preboot-os>
<final-os>
<name>Windows XP Pro</name>
<type-id>Pro</type-id>
<family-id>Windows</family-id>
<vendor-id>Microsoft</vendor-id>
<major-ver>5</major-ver>
<minor-ver>1</minor-ver>
<architecture>i386</architecture>
</final-os>
<section id="SystemMigration" name="System migration">
<description>Back up personal or custom files before the system is modified.</description>
</section>
<section id="PreOsInstall" name="Pre-OS installation">
<description>Configure the hardware and get the system ready for installing the target OS.</description>
<action name="Remove all partitions" version="4">
<description>Remove all partitions</description>
<action-type>Partition</action-type>
<variables />
<options>
<option name="StopProcessingTemplateIfActionFails">true</option>
</options>
<parameters>
<action>removeall</action>
<diskID>0</diskID>
</parameters>
</action>
<action name="Create D drive" version="4">
<description>Create D drive</description>
<action-type>Partition</action-type>
<variables />
<options>
<option name="StopProcessingTemplateIfActionFails">true</option>
</options>
<parameters>
<action>create</action>
<diskID>0</diskID>
<partitionType>primary</partitionType>
<offset>0</offset>
<size>20480</size>
</parameters>
</action>
<action name="Create C partition" version="4">
<description>Create C partition</description>
<action-type>Partition</action-type>
<variables />
<options>
<option name="StopProcessingTemplateIfActionFails">true</option>
</options>
<parameters>
<action>create</action>
<diskID>0</diskID>
<partitionType>primary</partitionType>
<offset>0</offset>
<size>0</size>
</parameters>
</action>
<action name="Mount C partition" version="4">
<description>Mount C partition</description>
<action-type>Partition</action-type>
<variables />
<options>
<option name="StopProcessingTemplateIfActionFails">true</option>
</options>
<parameters>
<action>mount</action>
<diskID>0</diskID>
<partitionID>2</partitionID>
<mountPoint>C:</mountPoint>
</parameters>
</action>
<action name="Format C partition" version="4">
<description>Format C partition</description>
<action-type>Partition</action-type>
<variables />
<options>
<option name="StopProcessingTemplateIfActionFails">true</option>
</options>
<parameters>
<action>makefs</action>
<mountPoint>C:</mountPoint>
<fsType>NTFS</fsType>
<quickFormat>True</quickFormat>
</parameters>
</action>
<action name="Make C bootable" version="4">
<description>Make C bootable</description>
<action-type>Partition</action-type>
<variables />
<options>
<option name="StopProcessingTemplateIfActionFails">true</option>
</options>
<parameters>
<action>set</action>
<diskID>0</diskID>
<partitionID>2</partitionID>
<boot>True</boot>
<OSpartitionID />
<Windows7>False</Windows7>
</parameters>
</action>
<action name="Mount D Partition" version="4">
<description>Mount D Partition</description>
<action-type>Partition</action-type>
<variables />
<options>
<option name="StopProcessingTemplateIfActionFails">true</option>
</options>
<parameters>
<action>mount</action>
<diskID>0</diskID>
<partitionID>1</partitionID>
<mountPoint>D:</mountPoint>
</parameters>
</action>
<action name="Format D Partition" version="4">
<description>Format D Partition</description>
<action-type>Partition</action-type>
<variables />
<options>
<option name="StopProcessingTemplateIfActionFails">true</option>
</options>
<parameters>
<action>makefs</action>
<mountPoint>D:</mountPoint>
<fsType>FAT32</fsType>
<quickFormat>True</quickFormat>
</parameters>
</action>
</section>
<section id="OsInstall" name="OS installation">
<description>Install the target operating system with the specified options.</description>
</section>
<section id="PostOsInstall" name="Post-OS installation">
<description>Add additional items after OS installation, before rebooting into the target OS. For example, you might add service pack updates.</description>
</section>
<section id="SystemConfiguration" name="System configuration">
<description>Automate system configuration that must happen after booting into the target OS such as installing drivers and applications and updating scan files.</description>
</section>
</template>