Error Message: “Fatal Error: An error has been encountered that prevents setup from continuing.
One of the components that Windows needs to continue setup could not be installed.
Press OK to view the setup log file.”


Translation:

This error message means the Setup program is unable to read from your WinXP installation CD.


Solution:

If your WinXP installation CD is very damaged or scratched, you’ll have to get a replacement from Microsoft.

You may be able to resolve this by copying the setup files from the CD to a folder in your hard drive. If you’re installing WinXP to a clean hard drive, insert a Win98 or WinMe startup disk in your computer’s floppy drive and reboot the computer.
At the command prompt, type the following command:

xcopy [CD Drive Letter]\i386\*.*
c:\i386\*.* /s /e

This command copies all the files in the i386 folder of your WinXP installation CD to a new i386 folder in your C: drive.
The /s and /e command switches ensure that you copy all directories and subdirectories (even empty ones) to the new location.

Now, type c:\i386\winnt.exe to continue the setup process. Winnt.exe is the installation
file that must be used when you’re running the Setup program from a startup disk command
prompt.