For those interested, I fixed this. It took me 2 or 3 weeks to figure this out, and I am A+ certified. So I figure I would share what I did for others who may be in the same situation I was. It ended up being very simple.
I took the hard drive and put it in another computer, which saw it as just another drive.
I went into the WINDOWS directory of the troublesome HDD and navigated to system32. I copied the entire config folder to the desktop.
I then booted to the XP CD and installed a brand new copy of windows OVER the old copy on the problematic drive. After windows rebooted 2-3 times, It was done.
I booted back into the original OS, and copied the config folder back. This brings back the registry.
I booted to the problem drive, and it started installing stuff off the CD again. I let it do it's thing.
Finally, I booted to the CD one last time, and repaired it. It worked like a charm, and when the computer restarted, it began right were it left off when I interrupted it.
The downside is you will need to reinstall all your drivers and service packs. But hey, that's a small price to pay.