It sounds like you need to now go into the BIOS by pressing the "Delete" key while the Gigabyte screen is showing and set up the CD/DVD drive as the first boot device so you can install your OS. The motherboard owners manual is a must read. It will tell you how to set up the boot devices.
The first thing to check when you have a freezing problem is the RAM. Did you manually set the RAM speed/timings/voltage to the correct settings in the BIOS? Have you run Memtest86+ overnight to test for RAM errors?
Freezing problems can also be caused by the CPU overheating. What does your CPU temp show up as in the BIOS?
We need to know your complete system specs to offer more meaningful advice.
man it seams more and more people are having freezing issues lately. Shortstuff is right more than likely it is a ram issue... you could check each ram stick individualy to see if you can boot up.. and if it freezes then you know that ram stick is bad (given you have the voltage, timing and speed set right in the bios)
Tried installing XP again and this time it took. I guess will see if everything works out. CPu temps were low 30's and the ram had been recogized as well. If XP loads successfully, i will make sure about the RAM timings. Never built a PC before, just added to. Nothing like being a newb.