Googled to other forums and found these (and a few thousand others!)
the several times i have seen this, it is usually a damaged installation disk OR an illegal copy of the installation cd.
Try to delete the partitions,create them and format them manually.If again you get this same error message. Run the diagnostics on the hard drive. If the hard drives passes the test.The windows xp cd is bad/the file mentioned along with the stop error is corrupt. Use and different windows xp cd and try.
Stop: c000021 {Bad Image Checksum}
The image user32.dll is possibly corrupt. The header checksum does not
match the computed checksum.