Windows XP on SATA 160 GB with 512 MB DDR2 RAM, Problem installing windows and format

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Hi,
I have been trying to install Windows XP SP2 from a bootable CD but for some reasons I havent been able to complete it.
Below you will find the system config followed by my queries:

New System

Processor: Intel Dual Core
Motherboard: Intel original 945 series
RAM: 512 MB DDR2
HDD: Seagate 160 GB SATA ( brand new)
CD ROM: LG
Floppy Drive: SONY

The issues:
1) When i insert the bootable Windows XP CD it takes a lot of time and returns with a error message "CDBOOT: Memory Overflow Error"
2) I brought my friends hard disk which has XP installed so that i could format my 160 GB hard disk but it does not go beyond the 'Operating system selection' page
3) When i select the mode i.e. Safe/Normal then it re-starts and takes me to the same page of operating system selection.

Anyidea how i can fix this issue ?

Appreciate all your help.

Regards,
Wacko
 
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