Windows 98/XP setup problems

My friend got a new computer and was trying to put XP on it. The install was going fine, but when the timer said 34 minutes left, it froze. Every time after that, it said something along the lines of "Line 727 of INF file \i386\txtsetup.sif is corrupted. Setup cannot continue." I brought over my windows 98 cd and tried to use that, but when I choose the setup option it says "Scanning PCI bus using mechanism #1" and then hangs. I've never seen that mechanism #1 part. What's causing it to hang?

The first problem sounds like a junky/scratched CD...

format and start from scratch

Get another copy of xp then start over.

i'm not sure about this but, it might be like hardware troubles. Take all your hardware out your computer b4 installing windows.