"Setup Is Starting" Problems installing XP Pro

Hey guys, I've been having some problems lately and thought that it was my hard drive and maybe my psu. So, just to be safe, I got a new psu, ocz powerstream 520w along with my new hd - wd 250gb sata2 16mb cache. I put the new parts in the computer and started it up. Put in my xp pro disc and it booted from the disc. It went through the normal steps and finally got to "Setup is Starting." It doesn't go any farther than that. That happened before when I had an old psu and my raptor. I thought the raptor had possibly died so I just went and got a new hd, rma'd the raptor and decided I should try from scratch with new parts. So now that the same thing happened with new parts, I am stumped. Is there possibly still hardware problems? Is the xp disc bad? What could it be, I really need some help, I would really appreciate any ideas.

specs
amd64 3000+ winchester
xp120 and thermaltake 120mm fan
wd 250gb sata2 16mb cache hd
dfi lanparty nf4 ultra
powercolor x800xl
ocz powerstream 520w
2x512mb corsair pc4400
thermaltake tsunami

try with only one stick of ram.

I put one stick of ram in the computer and now it starts up but it doesn't show anything on the screen. I can't believe all of this! Please help me guys.

have you tried both sticks, by themselves?