There have been a couple of times I have seen such a problem. So I am sure you are not alone.
Something that may help us out is more infromation.. You have told us nothing about your computer! Please let us know as much as you know about it.. CPU, motherboard... Brands.. models.. etc..
First thing I would try is installing the drivers WITHOUT the camera plugged in. Many cameras are like this. Once the drivers are installed, plug in the camera and pray that it works.
The only "documented" problem I know of that could be related is caused by a mixture of Windows XP, USB2 and devices with high bandwidth consumption. This can cause blue screens. I'm not sure if new drivers will fix this problem, as I do not think there is a patch for it.
Your PC is restarting (most likely) because it is blue screening. Windows XP, by default, restarts itself when it crashes blue-screen-style. It may appear that is simply restarting, when infact it is really crashing.
If you are unable to boot into your system, make sure you have disconnected the camera, boot into Safe Mode and uninstall your USB controller from Device Manager (should be near the bottom of the Device Manager window). Restart again, and this should allow you to use your computer once again.
Another possible solution is to download the latest drivers for you camera from the manufacturer's website and get the latest chipset drivers from your motherboard manufacturer. If you do not know what chipset you are using, perhaps we can help you determine that.
Lastly, I recommend you disconnect all USB devices from your PC until you have a possible solution. Any other USB devices you have may be interfering with installing the camera, so make sure everything USB is unplugged while your camera is being detected.
