win 2k pro to xp pro upgrade w/ blue screen & mouse pointer

I tried searching for a thread for this but couldn't find it. I did an upgrade from win 2000 pro to win xp pro, with a volume licensing disk (I am an IT at a k-12 school). I have performed this on many 2000 pro PC's in our district without a hitch, except for now. This is a Dell GX260. It copied all of the files from the cd, but on the computer restart, I get a turquise blue screen with a mouse pointer that I can move around (so it's not really frozen) (It's not the blue screen of death). There are no icons on the screen. It's almost as if it's waiting for something but can't get past that point. It shows the same screen when going into safe mode. And I can't do safe mode with command prompt. This really sucks! :confused

 

You can try clearing cmos, unplugging network cables & usb devices (process of elimination), even unplug all but the harddisk. If that won't work, I'm afraid your only option may be a clean install.