Check your installation disks they may be scratched, dirty or have corrupted files.
If not try clocking down your CPU to say 500mhz then installing the operating system. If this works and you get the OS up and running then clock up again to normal speed. I did this with a friend’s computer once that was having similar probs and it worked quite well.
I had a win98 upgrade cd that was bad. I called Microsoft about it and they replaced it after having me do a few test. I dont remember the exact errors that it was causing, but the install wouldnt work.
A wise man once said, "Don't piss on my leg and tell me it's raining."