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Windows XP Pro Installation Freeze

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I have just had a similar problem, if your system has two memory sticks take one out and reboot. Things should go okay. You can then replace the other stick once up and running.
I tried this with both sticks thinking one was faulty but both (individually) booted the system.
Although this worked I still had a similar problem after downloading updates and then rebooting.
I even tried a new HDD and got the same problem.
I ended up sending the whole package back. Initially they said it was a faulty processor, however it turned out to be a faulty motherboard.
Hope this helps.