Partition Magic - blue stop screen in WXP installation


Problem: Windows XP Home will not install on newly created FAT32 partition - blue
  stop  screen. Pre Windows installation stop screen. This is not windows installation
  stopping due to hardware|driver incompatibilities.

 

Computer:  Dell XPS 600
           Windows XP Professional
           Has 2 Factory installed partitions (39MB Fat, NTFS rest)

 

1. Restored original disk with quick NTFS formatting. Installed Windows with Dell
   Windows XP Professional. All files eliminated.

2. Installed Partition Magic. Created new partition for new operating system via the
   wizard (i.e. task | create new partition...). Default options used where could.

2. Rebooted to new partition, entered into windows XP home setup, F8 to accept EULA

3. In select partition to install Windows screen - unknown disk. No existing partitions
   or unpartitioned space listed. It lists this 4 times.

4. Enter, to continue Windows installation or F3 to abort gets:

      blue screen of death - setup has been shut down to avoid damage to this computer
      Stop: 0x0000008E (0XC00000005, 0XF7418CAD, 0XF6FDD7E4, 0X0000000)
      setupdd.sys address F7418CAD,  baseat F73EC000
      datestamp 41107c8A

 


Possible Solutions:
      Problem-Windows XP does not see the master boot record somehow?
              Changed to old partition with the rescue disks.
           Result: In Disk Management, the partition is healthy, FAT32, unknown disk.

      Problem-ROM BIOS settings have been changed. Restored the factory set ROM BIOS
              settings.Results: no change.

      Problem - disk problems. Ran Disk Diagnostics from the Dell Resource CD.
                Results:   Quick Test- passed
                           Full Test:  all tests passed.

      Problem: virus or malware. Restored disk-quick NTFS format. No software was
               installed except the drivers from the OEM disk. Internet connection
               not set up.

 

Can you make any suggestions?