Update,
If lucky the install will go through without issue but ends up at a windows notice with- "restarted unexpectedly or encountered an unexpect error. click to restart" this is an endless loop. Rebooting from DVD to select repair yields nothing as it reports no errors. (But this is only a boot check not a full function check)
I would rather not go back to XP and install SPx just to "upgrade" whcioh as mentioned is not really proven yet either. Staying with XP is not preferred as it soon goes EOL no firther support (if not already.)