first, when you reboot it, try removing the cd so it doesnt interrupt the boot process. Reset your boot order so it is:
1. CDROM
2. Hard Drive
and the others dont matter..
double check all that, format and start again. Installing/reinstalling everything is a necessary evil...
Although, on another note, this does remind me of something that happened to my friend. His sister gave him a computer, so he booted it at my house once, it was very nice, all specced out, and it loaded, Home Edition. I pointed this out and he said:
"It was a gift! What was I supposed to say?:'HOME EDITION??!!!?? FUCK YOU, TAKE IT BACK!!'"
Damn funny at the time.
On another note, you may just want to get Pro. If you are a student you can usually get it for a good deal legally, the adademic version is identical to Pro, and some programming groups on some campuses give winxp Pro away for free.
Either way, good luck with your install.
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