If everything passed and it didn't freeze in UBCD then the issue is you probably have a software issue.(Although your hard drive may be faulty)

Try disabling some startup software by going to...

Take software out of the equation.

Download http://www.ultimatebootcd.com/download.html
install and run the programme on any working PC and follow the instructions to create a live CD.
Boot to...

A+ Bob. :) I was having a bit of a momemt.

Please please please, rewrite that last comment with punctuations & other grammatical niceties.

I just noticed that you mentioned it boots to safe mode.

When you get in on safe mode turn off automatic restart on system failure.

Right click on my computer>select...

Sounds like a BSOD- If you don't want to reinstall try using the recovery console on the XP boot disk and perform a chkdsk /p on the drive.

Boot to the windows setup disk as usual but press R to...

Vineeth,

Try this and let us know what happens.
Start>Run
type shutdown/s and let us know what happens.
If this works then its probably a registry problem & you'll need to peform a system...