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So far I have installed XP Service pack 3 as follows:

Brand New XP installation P4 1GB Ram - Went really fast and no errors

Virtual Machine - went real slow but no errors

Existing machine P4 1GB Ram - extremely slow - no errors

Existing machine P3 512MB Ram - extremely slow - 1 error - couldn't copy atapi.sys from c:\windows\system32\drivers. After a bit of research I simply deleted the atapi.sys file and closed daemon tools.