Can't pass first windows startup screen

OK I got everything for the new system installed today and formatted the HD. Then I ran the initial Windows install, and after it restarts to start up Windows for the first time it stays on that screen FOREVER.

Right now I'm trying to install Windows 98SE and then use an XP upgrade once the 98 is installed (since I don't have a full install XP).

Since I've never had a SATA system before I'm kind of wondering if there's anything I should be doing here before installing Windows for the first time to stop this thing from hanging; or if anyone has any other suggestions they'd be appreciated as well.

The system specs are:
DFI Lanparty NF4 Ultra-D
3700 San Diego
2x 512mb Mushkin Redline
WD Raptor 74gb 10k rpm
Toshiba DVD-ROM
Geforce 7800GTX

Any thoughts?

Use the XP upgrade CD first. Before it gets going, it will ask you to put in your 98SE for verification that you own it. Then it will continue on with the XP installation. You don't actually have to install 98.