|Without getting into the mup thing I would say that your problem appears to be hardware related. |
The solution may be to disable all the components possible. First off, do not have any USB devices connected at all except for wired mouse and keyboard. Even those should be avoided if you have PS/2 equivalents available.
Next, enter the BIOS (setup) screens and disable all devices you are not using. Com ports (serial), parallel port, second display, printers, scanners, etc. No USB or flash drives, no card readers, etc.
You are not hitting any key to boot to CD after the initial first boot are you? When the PC reboots after XP has begun the setup you should not touch the keyboard during subsequent reboots.
Concerning the installation of the drivers. WinXP should be able to start in some limited capacity without third party drivers. If it can't it is due to hardware that it can't temporarily configure. That is why I recommend disabling as I mentioned above.
If that still doesn't work you may need to slipstream the drivers into the WinXP CD.
You didn't respond to what type of WinXP CD you are using. Is the CD a branded disk from Dell, Gateway, etc.?