Try this, I have just had the same problem and finally succeeded by: Start off with new install of Win 98 se, all the right drivers operating 100% correct according to the device manager in control panel. Go to start, accessories, system tools, scandisk and scan the drive while in windows. This took about 4 hours for a 40 gig drive. It found 2,500,000 compromised bytes and fixed them automatically (check the fix automatically box). After that I put in the XP cd pack #1 and let it do its thing whle I made all the recommended choices except that I asked for a complete log of all errors. It went perfectly this time. Scan disk from a win 98 dos startup just located one bad sector, not enough. Bios was set for performance with no changes. I had all of the previously mentioned errors before this. Be sure to boot win 98 several times to be sure it is good and test the internet to be sure your cards are right. Have the most recent 98 drivers installed. Cross your fingers. Good luck! Next Ill try starting with the XP cd on andother drive which is new, but which had problems also. IE.... I think this is a bad sector poroblem on the drive, presuming alll other issues have been worked out. ;-]
