BSOD When trying to install Win XP

One of the computers I administer caught a virus on Wednesday. Norton alerted the user to the virus but could not delete it or quarantine it. I didn't actually see this but the user told me it was a "trojan STM". After a reboot the computer now logs out immediately after logging in. I booted to safe mode and again it logs me out immediately after logging in.

So, I decided I don't have to take that, I'll just reinstall windows XP. I boot from the disk and after it initializes the drivers I get a blue screen of death!

I know the Win XP disk is fine because I used it to install windows on another machine earlier today.

How do I fix this?