It does not seem to work, I'm afraid
Let me give you some more details. I have an 80 GB HD which I have formatted.
After booting, the screen displays "detecting IDE drives" then starts to go pretty slowly (it's only a 2,6 celeron but it used to run much more quickly) After a 30 sec delay it seems to find all the devices. After another 30 sec delay it displays "verifying DMI pool data boot from cd" and about 20 sec after that "setup is inspecting your computer's current configuration". Then everything goes black for a minute or two (not even the cursor is visible) and then the initial blue screen of windows setup appears. It gives me two choices, enter and exit installation.
If I click enter, it displays that there is 76 GB of free space out of the ~77 of the hdd (calls that partition 1) and 8 MB unpartitioned space. It prompts me to choose the partition where I want to install and when I choose partition 1 it warns me that there are already windows files installed and that it it not recommended to have two operation systems in the same partition. If I choose to continue I can install windows in a folder other than C:/windows or I can push L and it deletes C:/windows and rewrites it. Then it gives me 15 secs and reboots. After reboot we are back to sqware 1.
If I choose exit installation in the blue screen it reboots and... here we are, back where we started.
Hope you're still online Doc...