[...] error: attempt to read or write outside of disk 'hdo'.
The specs on this laptop are: RAM 2 GB; HD 130 GB; Pentium M 1.73 GHz [...]
Hello!
As far as I can guess:
(1) You're out of space on the drive. Although, given my experience, you can fit in even a larger distro (say... a 2,5 GB ISO...).
(2) The drive is very old, I would say an ATA. This might give this error, due to the reading mode, which is different (CHS, instead of LBA).
We need more info about the drive, such as available space on each partition, the drive type (IDE, E-IDE, ATA ??) since this matters a lot when it comes to formatting.
There are too many possibilities and based on this info, it's very difficult to make guesses. The drive might also be damaged and the first sector unreadable.
I would run a diagnostic distro, such as
GParted Live, to check the drive for faulty sectors, available space and the rest.
Formatting might be OK, but drive's state is critical. Especially the first sector, first cylinder (first 512 bytes of the drive), where the bootloader writes some data.
Hope that gave you at least a hint, to move forward!