Unable to complete Windows setup after parts upgrade

[Surge1243]

Hello, I recently upgraded some of my machine's parts, including a new hard drive, so I am trying to do a clean re-installation of Windows XP Pro. It's an upgrade CD, but I have the Windows 98 cd to verify that it's an upgrade. Anyway, after installing all the new parts, the BIOS correctly recognizes everything and everything seems to be in proper working order.

I go through the Win XP install process - selecting the drive, formatting, etc. After formatting the drive and loading installation files, the next step is to restart the computer and continue with installation. However, after restarting, the system never gets past the Windows XP Pro loading screen. The little blue bubbles below the logo run across the screen, periodically stopping for about 5 seconds and then continuing. I can't seem to make it past this part. There doesn't appear to be any drive activity, either from the optical drive or the hard drive (no lights on).

I've done this about 4 times now, trying out a quick format and a regular format and I still end up with the same thing. I've also tried switching which optical drive the CD runs from and still nothing. The parts of the machine are:

XCLIO GoodPower 500W ATX PSU (new)
WD Caviar SE WD2500JS 250GB SATA (new)
Athlon 64 X2 4400+ (new)
Asus M2N4-SLI motherboard (new)
Sapphire Radeon X1650 Pro (new)
1 GB (2 x 512) Corsair DDR2 ram (new)
Sony floppy drive (old)
Sony DVD/CD-RW drive (old)
NEC DVD+/-R/RW drive (old)

Any help would be much appreciated as this is getting quite frustrating! Thanks again.

EDIT

After letting the system run for about an hour at the loading screen, I am given the following blue screen:

"A problem has been detected and Windows has been shut down to prevent damage to your computer.
If this is the first time you've seen this stop error screen, restart your computers. If this screen appear again, follow these steps:

Check for viruses on your computer. Remove any newly installed hard drives or hard drive controllers. Check your hard drive to make sure it is properly configured and terminated. Run CHKDSK /F to check for hard drive corruption, and then restart your computer.

Technical information:
***STOP: 0x0000007B (0xF7C7A63C, 0xC0000034, 0x00000000, 0x00000000)"

So it looks like the hard drive is no good, or does this point to some other problem? After restarting the system, I'm still met with the hanging at the loading screen. Thanks again for any help.

[glc]

Download the diagnostics from WD and test the hard drive. Download memtest86+ and test the ram.

[Surge1243]

I ran the WD diagnostics (quick and extended tests) and memtest and they both came back with no errors.

EDIT

I tried doing an install with a friend's OEM Windows XP Home cd, just to see if I could get past that loading screen. Using his CD I was able to, but when I tried again with my XP Pro cd I still ran into the same trouble. I've used that cd before when I first built that computer so I'm not quite sure why I'm running into trouble now.

[glc]

Clean the CD and look for scratches and damage.

[Surge1243]

Now I'm completely confused. I cleaned the CD and then tested it in another computer to see if it would get past the first reboot and it does! However, after then taking it to the upgraded computer and trying I get stuck at the same point. So I know the CD is in working order, and I also know that the computer in question can complete an XP Home install (from a friend's cd), but for some reason simply won't complete it when using the XP Pro cd. Argh! ><

[Panama Red]

Do you by chance have any usb devices connected or card readers connected to the mobo? If so, unplug them until after the os is loaded. Does your mobo have native Sata or do you have to hit F6 and load the drivers first?

[Surge1243]

Only usb devices connected are keyboard and mouse, no card readers installed. The mobo has native SATA drivers.

[Panama Red]

Have you tried it with a PS/2 keyboard and mouse?

[Surge1243]

Yep, tried that after your first post just to make sure, and I was still running into the same problem.

[Mike Hawthorne]

HI

Sorry I was going to suggest the key board thing but I see you already tried that.
I had the same problem and the keyboard was the answer.

Mike