WinXP Setup Freezing at "Computer's name", after re-install from Recovery disks

Hi all;

This is one I've never encountered out of tons of installations:

Have an eMachines T2642 that daughter uses. Program reported CRC errors attempting to save, rebooted computer, OS "POOF GONE. "

Reformated HD, checking surface, found no bad sectors. Reloaded WinXP from original eMachines recovery CD's, all seemed fine.

Rebooted into Windows setup, got as far as "What's your Computer's Name," clicked "next ", locked up. 20 minutes later, still locked up. (Actually not "locked" as mouse still moves, and music plays until it stops, but locked-up none the less.)

Pulled 2nd network card. Same result.
Selected "skip" instead of "next ". Same result.
Connected / disconnected network cable to MB network card. Same result.
Left percolating overnight. Same result.
Re-formated, reloaded restore disks, started again, selected "skip." Same result.
Deleted partition, recreated, reformated NTFS, reloaded restore. Same result.
Swapped HD out, reloaded. Same bloody result.

Found MS knowledge base article "904035 - The Windows XP Mini-Setup Wizard may appear to stop responding after you install Windows XP" but that's for 3 minutes, and sorts itself out.

Can't find any MS knowledge base articles related to total lock at this point.

Help?

Dex }:>=-

 

Check RAM with memtester. It could be one of the possibilities.