Yes after
moen pointed out that I remember this happening to one of my computers too. It had Windows XP
SP1 installed. I formatted and tried installing Windows XP
incl. SP2 and the installer hung just right there you described. It copied the files, restarts and attempts to boot for the first time. The computer hangs at the Windows XP boot screen.
I formatted again and installed Windows XP incl. SP1. Some PC Configurations don't seem to like XP SP2. I don't know which exact hardware is incompatible with SP2 but SP1.
Please try installing Windows XP
incl. SP1 
Cheers,
McoreD