Ok here goes,

I have been working with this computer for like 2 weeks now, every time i go to install windows it will go through formatting then when it goes to the installing the files needed at the boot screen sometimes it will go thought the whole process and restart and it will just keep restarting and other times it will not read a file. I though it was the hard drive but that was not the case but now i am leaning more to the Optical drive. I just wanted to make sure that that might me the issue. What do you think? One more thing i have tried multiple windows installation cd, and dvd,s.

your answer is in the last line. your otical drive is having some issues. However here are a few things you could try to guarantee if it's you HDD or optical. uses fdisk (easier to use from a bootable win 98 cd) to partition you HDD, if you have a manufacturer cd that comes with the HDD use that to test and diagnose the HDD then set it up for use with an operating syste, Next clean the lens in the CD drive, if you dont ahve a can of air, remove the drive open the top cover and use a lint free cloth to clean the laser lens. if the drive is a sata chage the cable or the port which ever is easier. if it's IDE and it share the cable with your HDD change the cable and set the cd drive to cable select. then make sure that the HDD is jumpered accordingly.

Buy your self a lens cleaning CD, you just pop it in your drive, run it and a little brush on the Cd cleans your lens. Don't go opening laser drives.
To check your drive. make a directory (File) on your desktop, call it XP and copy all the CD there. If it copies OK, do an installation from your desktop.
I don't know if it will help but you could also try deleting your BIOS, remove your motherboard battery for 3 mins and replace, then try again.

Hey thanks for all the help!!! I kind of figured what the issue was but its always nice to get a second opinion ill tell you all how it goes later.

If you are happy, please mark as "Solved"