Also, are U doing a repair install or a freash install?
Have U tried another xp cd (see if U can borrow one)
Hmm... might be one of those keyboard/mouse issues.
Try resetting bios to default or if this is a laptop, then try to remove battery, remove cable, hold power button for 30 seconds or more, then put back just cable and try installing again.
Try another keyboard
Try running a chkdsk /r from recovery console just in case (boot xp cd, press r, press 1 , type password and press enter or just press enter if U don't have password. Type chkdsk c: /r and press enter)