Appreciate what you say about re-formatting, but as the problem is occuring when doing this, it is very pertinent to this thread, in fact, it is the crux.
OK - I have spent hours on this, and I am certain I know the problem, but unfortunately, not the solution. According to Microsoft Knowledge Base, the error comes up after Verify DMI Pool when you try to load XP onto an IBM Hard Drive over 33GB, where the BIOS is Award 4.5. I now think this applies to ANY Hard Drive over 33GB. I have now used a combination FOUR Mobos, and THREE Hard Drives - an IBM 10gB, IBM 60gB and Maxtore 80gB (you see what I mean by hours). 3 Mobos are Award BIOS, one is AMI (American Megatrends). I was able to successfully load the following combinations - Awards BIOS and 10gB, and AMI BIOS and 60gb and 80gb. 3 x Award boards gave the error whether it was with the 60 or 80. Furthermore, when I tried to UPGRADE after loading ME first, it still failed, and when I re-formatted, the FDISK read the drive as 30GB, not 60gB. Even trying to use the 60GB with an Award boar after having successfully loaded XP using AMI, I still got the error.
The only way to fix this for yourselves, and I stand by this, is to get a MOBO running BIOS other than Award, or to use a 30GB or less HDD. Alternatively, does anyone know the number for the Award people

The MS KB seems to think it's an IBM problem - I disagree.