System instal/boot problem

Hello everyone, i got a problem with my recently purchased pc (no-name):
AMD Athlon Dual 6000
2GB DDR2
Ati Radeon HD3450 256MB DDR2
HDD 640GB (2x 320GB)
GA-M56S-S3 Gigabyte motherboard
Windows XP SP3
*Can't get any specific info on components since i cant boot up my pc (writing from another pc atm).
Problem:
I bought a PC from a local store like 10-15 days ago without installed OS, so i installed it on my own using Windows XP CD, after that i upgraded it to SP3 etc etc.. got drivers up, everything worked perfectly, except for hard drives.. in My Computer it displayed like 7-8 (dont remember how many of them there were) removable drives :S which were totally unusable and when you click them it pops to insert drive into pc (something like that). Above that there was my hard drive which was split in 4 partitions. Those unusable "Removable drives" were kinda annoying cuz i was loosing myself in total commander when copying something due to so many number of random drives (C D E F G etc) and it was annoying me so i went to disk manager and disabled all those removable drives. Everything still worked fine. Yesterday i picked up some nasty trojan crap and it rly screwed up everything and i couldn't really bother to remove it with anti-virus software so i was just about to format my drive and reinstall OS.. And so i restarted and putted in the cd i used to install my OS the first time when i got the pc.. Windows setup opened and when it came to the part to pick a drive on which to install there was only drive C: and drive D: (both with 130GB size and both 130GB of free space.. what the f***?) and i had 4 partitions 1 was 60GB and 3 others split equally - about 193GB each. So first thing in my mind.. maybe XP setup doesn't support over 300GB or something so therefore it wont display the real size? And maybe it wont display partitions for some reason, only 2 hard drives.. ok so i choose drive C and format it using NTFS, everything went fine.. restart pc - restarted.. and when its about to boot the system it just restarts.. that happens all the time from that point.. i tried a lot of stuff, checked stuff in bios, reset to defaults.. nothing helped. Just don't tell me that my HDDs died lol
Thanks