XP Install Problem

[Home Built]

My daughter was having a random reboot problem with the machine I built for her a few years ago. According to her, McAfee Antivirus said she had a few bugs that McAfee couldn't remove. Rather than giving it to me to work out, she let her boyfreind (a self proclaimed Computer Wiz) work on it.
Last night she brought it over for me to work on. She told me he tried everything he could think of including a format and reinstall of XP Home.
I can get it to boot to the XP CD and it displays the blue "Windows Setup" screen and proceeds to load the files.
When it finishes loading the preliminary setup files I get one of three scenarios:

Most of the time the screen turns black within a split second of the licensing agreement screen coming up and locks out the keyboard.
Sometimes it makes it past the end of the file install and skips right through the licensing agreement and goes to the "Welcome to Setup" but then it completely dissables the keyboard so when I go to press enter to set up Windows XP now, nothing happens.
In both instances the computer stays running but the HD light goes out, the CD winds down and then it dissables the keyboard completely.
I've already:
Ran Memtest386
Tested the Hard drive with WD's utilities
repartioned and formatted twice

Specs:
Soyo K7VME MB
AMD Athlon XP2400 processor
120G WD
1G OCZ Memory
FX GeForce 5200 AGP Video Card

I'm trying to reinstall the same XP HOME CD that I originally installed when it was first built.

Any help would be greatly appreciated.

 

[dfuze]

Sounds like either one heck of a virus is burried in there or the hard drive is dying. I just had to replace the hard drive on my laptop. When trying to reformat with 2000, it would copy the setup files then die on me, or sometimes give me a vague error (don't remember what it said). Do you have a spare hard drive to test this out?

 

[Home Built]

I ran Western Digitals Utilities tests (both the quick test and the full test) and it said the hard drive was good.
I'm not getting any error messages at all.

The OS installation stalls at the end of the Welcome to Setup screen and locks up the keyboard,
- or -
it puts the monitor into standby (it goes black) and locks up the keyboard right after it installs the preliminary setup files.

It's almost like one of the XP files that are being installed is conflicting with something in the BIOS causing it to stop and lock up.

 

[savvy]

Maybe replacing it with a Seagate...

 

[dfuze]

Flip the Windows installation CD over. Are there any scratches on the bottom? If there are, that may be the problem too. Even without scratches, I would use a dry soft cloth to clean the bottom, gently rubbing from the inner circle to the outer edge, not around in a circular motion.