|"I am not booting via BIOS. I am booting Xp via Me."|
You can run XP's Setup from ME to install XP, or you can boot the computer from the XP CD to install XP, but you cannot boot XP from ME.
Steve Dunn said:
"Your problem is almost certainly hardware."
He's probably right !
If the second stage of XP's Setup does NOT complete - typically you see it gets stuck at the same value of 3x minutes remaining for a lot longer than a minute, then the computer black screens and restarts and starts the second stage of Setup all over again, in an endless loop, that IS your problem.
Usually if you remove all cards that are installed in mboard slots, unplug all devices from the external ports, that are not not essential for running Setup , and start Setup all over again you can complete Setup successfully. Then you install the cards one by one if that applies, and plug in external devices you unplugged if that applies one by one, they will all install or be recognized fine.
E.g. I had that problem when I tried to install XP on a friend's desktop system. It turned out it was a Sound Blaster Audigy sound card that was causing the problem. The card installed fine after Setup was finished.
If that doesn't cure your problem, then test the hard drive. There may be one or more bad sectors on the partition you're trying to install XP on.
Check your hard drive with the manufacturer's diagnostics.
See the latter part of response 1 in this:
If you don't have a floppy drive, you can get a CD image diagnostic utility from most hard drive manufacturer's web sites, but obviously you would need to make a burned CD, preferably a CD-R for best compatibility, on another computer if you need to.
Seagate's Seatools will test any brand of hard drive.
Do the long test.
If the hard drive itself tests okay, any data problems found can be fixed, one way or another.