Is Service Pack the source of my problems?

I just built a new comp with these stats:
Gigabyte 7VAX KT400 mobo
XP 2100+
GEforce 4 Ti4200 64 MB
512 MB DDR PC2100 RAM
Pioneer Slot-feed DVD
Lite-On 40x burner
WD 80 gig 8mb HD
Maxtor 60 gig HD

The WD and the Lite-on are hooked up to same cable
The DVD and the Maxtor are on the same cable (master/slave respectively)

When I try to install any games (Warcraft 3, Diablo 2, Half-life are what I've tried) I cannot install it completely. During installation, around a little past half way for most, it always finds a bad file and cannot install it correctly. Does anyone have this problem? I've been told it might be Service Pack 1. I am running Windows XP. But it always encounters either a bad file or just restarts in the middle of installation. It normally finds the bad file if I copy the cd onto my HD and try to install. When I try to install through cd, sometimes it restarts my comp for no reason and sometimes it just finds a bad file. I know the cd's are good because I've used them with different computers and they are all legitimate. Any help would be appreciated.