Following the directions here
Method 1: Reset the registry and the file permissions
Important This section, method, or task contains steps that tell you how to modify the registry. However, serious problems might occur if you modify the registry incorrectly. Therefore, make sure that you follow these steps carefully. For added protection, back up the registry before you modify it. Then, you can restore the registry if a problem occurs. For more information about how to back up and restore the registry, click the following article number to view the article in the Microsoft Knowledge Base:
322756 (http://support.microsoft.com/kb/322756/ ) How to back up and restore the registry in Windows
To reset the registry and file permissions, follow these steps:
Download and then install the Subinacl.exe file. To do this, visit the following Microsoft Web site:
http://www.microsoft.com/downloads/details.aspx?FamilyID=e8ba3e56-d8fe-4a91-93cf-ed6985e3927b&displaylang=en (http://www.microsoft.com/downloads/details.aspx?FamilyID=e8ba3e56-d8fe-4a91-93cf-ed6985e3927b&displaylang=en)
Start Notepad.
Copy and then paste the following text into Notepad.
cd /d "%ProgramFiles%\Windows Resource Kits\Tools"
subinacl /subkeyreg HKEY_LOCAL_MACHINE /grant=administrators=f /grant=system=f
subinacl /subkeyreg HKEY_CURRENT_USER /grant=administrators=f /grant=system=f
subinacl /subkeyreg HKEY_CLASSES_ROOT /grant=administrators=f /grant=system=f
subinacl /subdirectories %SystemDrive% /grant=administrators=f /grant=system=f
subinacl /subdirectories %windir%\*.* /grant=administrators=f /grant=system=f
secedit /configure /cfg %windir%\repair\secsetup.inf /db secsetup.sdb /verbose
Microsoft provides programming examples for illustration only, without warranty either expressed or implied. This includes, but is not limited to, the implied warranties of merchantability or fitness for a particular purpose. This article assumes that you are familiar with the programming language that is being demonstrated and with the tools that are used to create and to debug procedures. Microsoft support engineers can help explain the functionality of a particular procedure. However, they will not modify these examples to provide added functionality or construct procedures to meet your specific requirements.
Save this Notepad file as Reset.cmd.
Double-click the Reset.cmd file to run the script.
Note This script file may take a long time to run. You must run this script as an administrator.
Install Windows XP SP3.
If this method resolved the error message and if you successfully installed Windows XP SP3, you are finished.
If this method did not resolve the issue, go to the "Next Steps? section.
Full text available on M$'s Web Site here
http://support.microsoft.com/kb/949377
This is the only issue I have experienced with XP SP3 in well over several thousand installs. While M$ say it is related to the Way that a Slipstreamed Image was made for some AMD CPU's I've also experienced this same issue with Intel CPU's but the same solution works in both cases.
Col