Corrupted Install Source?? Problems installing Widows XP Pro SP2 in kvm/qemu
I don't know for sure, but everytime I've seen that problem arise from a standard XP install, it's been due to bad juju from your windows installer. Are you sure it's a clean disc or set of files??
I've not tried the particular install you are doing, but I do fix Winders on a day to day basis.