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Did you try that new hardware with a hard drive that already had an OS installed? That can be due to memory issues. I've heard a few stories where XP won't install in a system with unstable memory. You can try to decrease the ram speed, e.g. if it's at DDR400 bring it down to DDR333, or just try to ease off on the ram timmings, if you have it at CAS2-2-2-6 change it to CAS2.5-3-3-7 That could help.
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