just about everyone that i heard of doing the winnt.exe way of installing get that error including me to. I hate how that never works and hangs for like an hour. It is another bug in windows and it is only in xp and up <_< just make it bootable here is a guide on how to make it bootable for xp but it is on the same lines for 2003 http://winxp.bink.nu/
and it is only in xp and up <_< just make it bootable here is a guide on how to make it bootable for xp but it is on the same lines for 2003 
Hybrid Mode
