Fresh Windows install intermittent program installs

Here's a weird one guys. I have a laptop of a client whose hard drive failed and wouldn't boot. Simple enough fix, replace hdd, back up files, format, reinstall... I was wrong, I did this multiple times with different versions and builds of windows XP. The install goes smoothly, and loads windows fine, but when I go to install anything other than updates and drivers, it fails. I originally thought it was a .net problem but it seems to be fine. I've tried different sp version installs, windows update, drivers, checked log files, everything...

I'm stumped and frustrated. Any ideas?

Something else I should probably tell you... somethings install fine, but then wont open. for instance: I downloaded and installed firefox fine, but when I open it, its gives me the crash report. Same thing happens with firefox safe mode.
 
I would start by using Driver Verifier and also looking in Event Viewer to see what the errors are logged as. I would also be suspicious of the Memory, if it has more than one module try running it with just one and then swap over if no improvement.

When you say it fails to install is that only when you are installing from disc, if so check the CD/DVD drive by running a lens cleaner through it, or try using an external drive.

Have you loaded all the correct chipset drivers and Raid driver if it has a SATA drive. Are there any Yellow triangles in Device Manager.
 
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