Thanks for the suggestions.
All kind of things happened, but it is not fixed yet.
boot.ini is identical to my other systems where it works.
I have no CD drive on the netbook, so I made a Windows XP Recovery Console USB stick: Link. This allows me to use BOOTCFG.
I used BOOTCFG before and actually was now convinced it could fix the issue, but it just messed up: Multiple Windows XP entries selectable at startup, but pointing ot the wrong partition.
I reverted to a bad habit which I also remember from before: I booted with a DOS stick and did "SYS C:". That made the DOS prompt work again, and ONLY the DOS prompt. 🤣
Some BOOTCFG /REBUILD stuff again (and "fixmbr" and "fixboot" ), and some manual boot.ini editing. Things start to look good: I can choose XP or DOS at startup. But when I select DOS the system hangs, and I just see a blinking cursor.
Tried it again: Same thing, it results in booting just DOS, or being able to select Windows XP with a broken DOS.
Besides that:
I copied all the root files from a backup to C:. It does not change anything. File sizes and timestamps are the same.
The problem I tried to fix may not have been there in the first place: I noticed it depends on when you press F8: if you press early you can select the OS, if you press late you get the same screen but without OS selection, just LOG and Safemode stuff.
May have to accept that I just need a bootable-USB stick to get to DOS... 😒