I recently built a system with all new parts from Newegg.

Core 2 Duo Proc
Gig of Ram
160 WD HDD
Lower Mid Level MBO

It worked fine to two weeks. Two days ago it began to randomly reboot. There was no virus protection on it at this time. I booted into Safe Mode and attempted to download and install Avg free. During this attempt I found that during extraction, the files became corrupt. It gave me a warning and I was unable to install the program. I still had the random reboots in safe mode. No blue screen of death. I decided that it was a virus and due to my inability to install a virus program, I decided to reinstall windows after a format. I started this process right away as I had the Windows XP system disc on hand. The format completed and Windows files began to transfer to the HDD. At around 50% a warning poped up that stated" The file tourP.exe was not copied correctly" "The file setup placed on you hard drive is not a valid Windows XP system image. If you are installing from a CD, there may be a problem with the Windows XP CD." It allows one to retry or skip the file. It wont work if I retry, and its obvious there will be problems if I skip. I have tryed to skip and many many other files give this same warning.

I have done the following things to correct this issue with negative results;
Formated the HDD
Tryed different Windows XP cd
Tryed different Hard drive
Tryed Different CD drive

I am at a complete loss. It seems I have narrowed it down to MBO, Processor, Ram. I cant see how these items would cause this problem.
I have tryed a format/erase program other than the standard windows one. No help.

Thanks in advace for your help.

As far as I know, you can't install AVG in safe mode-some services cannot start.
Did you do a full format on the correct partition?
I agree with you-this should not be a problem with RAM or MOBO.
I've installed with missing files before, and it might be worth trying.

I have done numerous formats, deleated and created partitions. This has to be a hdd problem I suppose. The other HDD I tryed is an older IDE drive. Or mabey its the Windows Disc....

turned out it was the ram sticks. I switched them out and it booted and installed fine.