I recently wiped out my hard drive so I could reinstall everything to start fresh. I was having problems with the RAM running at 100% only when I was online doing simple games. I replaced the video card, I've added memory and even set up page file to try to help. So that's why I decited to wipe it out and start over. Now, during xp setup I get a message "DRIVER IRQL NOT LESS OR EQUAL". I formatted the drive and set up new partitions and all. I ran xp setup at bootup. Did a chkdsk got the message "the volume in drive C has no label volume" and then it says "the volume appears to contain one or more unrecoverable problems". I got that message also when I ran it on drive D. Please help.

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Sounds like a piece of hardware is causing the crash.
Try removing all peripherals that are not necessary for the running of the pc. Use only one stick of RAM. Reset the bios then go into the bios and apply the best configuration settings.
Try again to install.

You may have to get the relevant HD checking tool from the HD manufacturer to check for faults.

I disabled the peripherals and the blue screen is gone however the setup keeps looping and won't finish installing and just reboots. I am trying your other suggestions but not sure how to run with 1 stick of RAM. The Bios settings have also been reset.

Place the RAM stick in the nearest slot to the processor, then reset the bios.
Not promising that it will work, but worth a shot.

Just power off at the wall, ground your hands to the chassis and remove extra sticks of RAM.... and swap if it does not work. Memtest86 loaded onto a floppy will check your RAM for you [no OS required, it is bootable]. Consider also mb overheating... it may not be the cpu but the Northbridge or Southbridge which is giving trouble. On an Intel-based machine the Southbridge gets a heavy workout with all the disk activity during Setup.... if you feel comfortable doing it then release the SB heatsink, check the paste is plentiful and soft else renew it, reclip the heatsink. Course, you gotta have heatsink paste... your local tech may give you a smear.

Yahoo! So I was able to complete XP installation (using the pc right now). I disabled the peripheral's and took out all but 1 stick of RAM. I still got the blue screen error while setup was installing devices. (I recently installed new video card) so I took it out and popped the old one in and install finished. So now I basically have a brand new pc and I don't want to mess anything up so do I just pop the other memory sticks back in and that's it? And what about my new video card? I am so afraid to mess this up again!

Yahoo! So I was able to complete XP installation (using the pc right now). I disabled the peripheral's and took out all but 1 stick of RAM. I still got the blue screen error while setup was installing devices. (I recently installed new video card) so I took it out and popped the old one in and install finished. So now I basically have a brand new pc and I don't want to mess anything up so do I just pop the other memory sticks back in and that's it? And what about my new video card? I am so afraid to mess this up again!

Ok, I also put in a new sound card about 4 months ago. So when I tried to install the driver for that...got the BSOD. I uninstalled it in safemode and system is fine...with no sound. What is happening???

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