Yeah... I have some thoughts...
Why did you decide to install (reinstall?) Windows XP?
Are you using a Microsoft retail CD, an OEM install CD, or an OEM recovery/restore CD?
During what part of windows setup do you encounter errors? Or alternatively, how many minutes into the setup process are you before you error out?
Try a different bootable CD. For example, a bootable memory test CD (
www.memtest86.com). That would test basic functionality of your CPU, memory, CD reads).