Boot stuck at "loading windows" after XP Home install

Archived from groups: microsoft.public.windowsxp.help_and_support (More info?)

Hello a friend of mine just upgraded to XP Home from Windows Me, and it
worked for a couple days then it started to crash. It became more and more
severe over time until the point where it would not boot. It just freezes at
the Windows XP Home loading screen. He asked me to take a look at it. I
removed everything but the basics it needed to function, and still nothing. I
swapped the memory, and tested the hard drive on my computer and it all works.
I tried to install windows XP Home fresh, but once it copies the basic files
and goes to the loading windows screen it freezes. Any ideas?

BTW he has a Gateway PC, running a 1.1ghz Anthlon CPU, 28GB HDD, CD ROM,
2x128MB RAM, Cheap Video Card, built in sound.