Windows XP SP3 issue with booting?

Error 1024 just means Setup has stopped. So I am Not Sure What the error is. But Have you tried booting up repeatedly pressing "F8" and selecting Safe mode. If that doesnt work you need to boot pressing DEL to access the bios and select BOOT PREFERENCES I cant point you to exactly where it will be as each Bios is different. But When you find BOOT PREFERENCES select your CD to boot before your HD. Then Put the Install cd in the drive and Select Save and quit. Your Puter will reboot Hopefully saying some thing like "Press any on to boot from CD" Meaning setup will run from the cd. WARNING If you reinstal You will lose all your programs and settings and files.