Windows XP Pro Freezes on Installation - file 'ASMS' is needed, XP re-installation pr

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HELP PLEASE!

Have read many threads on this and other sites and tried everything suggested (except swap out CD drive - don't have a working older drive to try, just a brand new one, which I'm going to try anyway). This PC is at least 5-6 yrs old - has original Hitachi CD/DVD Drive (reader, not writer). Have unplugged ALL devices from back of computer (USB ports, etc). Just has (1)internal CD/DVD drive and (1) internal LS120 floppy drive left installed.

Something happened to computer - Windows XP Pro would no longer run. Tried re-installing Windows XP Pro. using OEM CD with hologram. Attempted to do a repair install, instead of a fresh install - hoping to be able to keep all programs/devices intact.

During installation, computer got stuck on: "The file 'asms' on Windows XP Pro Serv Pack1 CD is needed" Type the path where the file is located and click OK"

"Copy files from: Global Root\Device\CDRom0\I386."

The screen is locked, and I can not type or change anything. Keyboard will not type, mouse will not work. Can NOT change the path. Can not hit SHIFT F10 to get to a DOS prompt, etc.
Have tried running in Installation Recovery Mode, and can get a C:\Windows prompt. However, can't copy any files from my CD (D:\) drive. Can't seem to be able to run REGEDIT. Wanted to try the MICROSOFT SUPPORT suggestion (http://support.microsoft.com/?kbid=311755, but don't know how to get to REGEDIT.

I can get to BIOS/SETUP mode and back to Windows installation mode, but that's it.

Suggestions on what to try next?
Should I try a "Fresh" Windows install? Will I lose any programs or devices? Will I have to re-install all my programs and hardware all over again, if I install in the same directory on C drive? Note, I have a NTFS file system on HD, not FAT32. Thanks!
 
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