Just a suggestion... try a BIOS update? Flashing a new one fixed this error for one of my friends. Also, make sure your drives aren't registered as using ms-dos compatibility mode under your current os.
You've probably tried these already but just in case...
Quick update, thanks very much for your help wolluf... In the end I just bit the bullet and slaved it to my desktop system and it's working fine now i've replaced the boot.ini with the one you specified.
Cheers again.
'Without Success' = The install aborted before anything was replaced, an error which seems to be caused by a hardware conflict which I haven't the time to resolve.
Windows 98 worked perfectly fine after the XP install failed, however, there was an irritating OS choice menu item for the XP...
I was formatting a system for a business associate of mine who disliked Windows ME and wanted an upgrade to either XP Pro or dowgrade to 98se (don't ask me why) as well as the format.
I formatted the usual way, installed Windows, everything worked fine. I then attempted to uprgrade to Xp...
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