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If you have you Ubuntu disk handy, you can fix this. Windows is unable to read Linux partitions, so it hangs during the installation, as it is unable to find a valid Windows partition on the hard drive.
See this Microsoft article.
You can also use any Modern/ recent good Linux live CD to fix the problem as well. You need to partition the drive as a fat32 partition, so the Windows installer can see the drive correctly.
Also, if the computer is a very new one (less than two years old), then realize that Windows XP does not often see sata drives correctly, without drivers for the chipset handy during the installation.