I can't setup my windows xp past "what is your computer's name?"

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I just ran a recovery disk on my pc. When I reboot it I am required to complete the initial Windows XP setup. The problem is when I get to “What’s your computer’s name?“ I enter it, click next and nothing happens for a long time. So I decided to let it over night to see if it just need more time. Nothing! I replaced the hard drive presuming that the original HDD was damaged but got stuck in the same spot. Could my recovery disks be bad? I think I have done this procedure once a while back and it worked fine.
Any idea as to what is going on?
 
If it's an ATA drive (lots of pins at the back) then make sure both the HardDrive and CD/DVD drive are set for CS (This is a jumper connector at the end of the drive, you should see CS position for both!)

And also clean the discs
 
Dear Kimsland, thank you for your reply. I actually decided to remove any USB device connected to the PC which I only had a mouse, so I replaced it by a PS/2 one. Strangely it worked. Again, thanks for your help.
 
Thanks for the update
USB can do this, sometimes I recommend installing Windows with Monitor; and keyboard only.
Once Windows is fully installed (ie now) usually you can re-insert the USB mouse
 
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