Blue screen with h/w failure message

I have problem installing Win2K Pro on a Duron 750Mhz system. I had successful Win2K installations on this box before. The message comes just as it is starting the setup for the 2nd time after initial copying of the setup files to disk.

*** Hardware Malfunction
Call your h/w vendor for support
*** The system has halted ***

in the corner of a blue screen.
However, Windows ME (original OS on that box) loads and operates just fine.

Other specs of the box are: 128MB, 30 Gb hdd, 12xDVD, 8x4x12 CD-RW, 10/100 n/w card and 56K modem.
Does anyone have an experience like that?
Thanks

 

Can't think of anything