BleepingComputer.com: Cannot reload XP on Compaq desktop

I am trying to re-format my hard drive with my original HP XP Home cd. It loads the files and then it shows" windows is starting". Then it goes back to the boot automatically and starts the install again. I have tested the hd with a re-generator and checked the 1GB ram, motherboard. All shows good.
my OE cd is sp2 that I am using...it is a 160g Western Digital pata drive. The bios is set to boot from cd first and hdd second. I also swapped ou the optical drive to eliminate that possibility. I made a copy of the OS cd and tried that as well.
Be advised that I checked the hd integrity with a hard disk regenerator program and it tested ok. I also used mem test 86 and ran it for 30 min with no errors. On this last try, I get this error: "error loading operating system" "press any key to reboot cd." but now it won't even boot my cd software. Now it finally is back to the reboot cycle again. Also, I did a Dariks boot and nuke to get a clean partition.
I attached a usb drive adapter to the removed hd and plugged it into an old laptop. I d/l the WD h/d diagnostics file to my flash drive and ran the tests from there...the drive test was successful...What am I missing? Thanks for any suggestions

Start again - delete the partition and recreate it - format and install. When it gets to the point where it says "Windows is Starting", remove the cd drive before it reboots. Sometimes that's all it takes. It may not work, but it's worth a shot.

To make sure that I understand the process.....Should I used Dariks to nuke it? Then put in the XP cd and re-format?

No need. I'm only suggesting the partition deletion to make sure EVERYTHING is wiped out - including the MBR. The key, however, (assuming this will work) will be removing the cd after the installation but before the reboot.

That didn't work as it didn't give me enough time to remove it...it almost acts like the install failed before it was finished...it didn't even get to the F8 link to accept before format

Are you saying you're not even getting to the point where you can format the hd? If so, I'd think it's one of three things - bad cd, bad cd drive, or bad hd. It could be something entirely different, but those would be my first three guesses.

That was my first thought..so...I have replaced the cd, drive and hd with another...the optical drive responds to other diag discs as well...I'm stumped...It will not get to the format option now...I am going to acquire another hd and try again...thanks

Check the installation cd for scratches, dirt, fingerprints etc & clean it if necessary.
If it is scratched use a scratch repair kit then immediately make a copy and use the copy instead of the original.

I made a copy of the OS cd and tried that as well.

btw, the original looked good, but I copied it anyway..