my windows install problems were related to a dirty xp disc or 1 bad stick of ram
i would get the weirdest errors and setup could not continue due to the corrupt file etc...

i recommend installing xp with a single 128mg stick of ram to test

you can also enter your bios and disable your usb, ethernet and sound if they are built in and that might get you past the install if it is usb related.

good luck

egghead