Most likely a registry corruption by what you are saying but i would need to see the BSOD error code to tell what it is exactly.
If you are trying to install the OS then you need to set your bios boot order to boot from the Install CD......you are still getting a BSOD because your system is still trying to boot from your hard drives old windows install.
You could try a repair install if you have important data you would like to save however i would back this data up to disc/logical partition and clean install the OS if it were me.
To perform a repair install see: http://geekpolice.net/pc-tutorials-guides-and-faqs-f13/how-to-perform-a-windows-xp-repair-install-t540.htm?highlight=clean+install+xp
To perform a clean install (ie Wipe the hard drive clean of all data) see here: http://geekpolice.net/pc-tutorials-guides-and-faqs-f13/how-to-perform-a-clean-install-of-windows-xp-t539.htm?highlight=clean+install+xp
Good Luck