Blue Screen Lock-Up problem when Installing XP Pro

I want to setup my system to run my existing OS(Win98SE) along with Win XP Pro. I have 2 HDDs. One a WD 10G that is partitioned in half holds my Win 98SE OS. This OS if fine No problems with it. My second HDD is a Seagate 6.5G HDD. This is the drive I want to set WIN XP Pro on. It seens I've tried everything and I still don't understand the problem.
I get as far as formating my second drive in the xp setup screen. The blue screen(of Death) locks up when it starts to copy files. More times then often it locks up when tring to copy the Shell32.Dll file. At this point, I can't do anything but press the reset button.
Things I've tried (but didn't solve the lockup problem):
I changed my bios settings to Boot in the CDRom, C, A sequence.
A low level format with a SW tool from the Seagates website.
Check and clean the XP Pro disk.
Repeat the installation setup about 1000 times.
Run Scandisk and other HDD test
All of which turned up nothing.
If anyone has any suggestions please HELP................

 

Have you tested for bad/mismatched RAM? Try re-seating/removing/swapping out modules if you can.