|i once created a big problem for myself:|
my parents had a compaq presario with a recovery partition on it. I wanted to reformat so i booted from a windows install CD and deleted both partitions, then creating a single partition to install the OS to.
Somehow, this broke the hard drive. don't ask me how. but the OS wouldn't install (from a disk i use all the time) and i had to send it back to compaq.
if you have another hard drive, you could replace the one in the computer and try installing to that. that would tell you if the problem was with the install CD, the HDD, or something else.