Well that appears to be good news. Just let the OS install. Once you are at the desktop do not let it do any windows updates. You need to first reload drivers as per the steps HERE. Note that there is no Desktop system software for your system so you can skip that step.  Once you have all your drivers reinstalled. check device manager for anything that might still be missing. If device manager is clean then slowly begin to start getting windows updates. I always suggest you only do a few at a time and give the system a spin in between update installs. This checks stability of the update installs.
I have a Dell Inspiron 530 with XP. I was in the process of trying to remove the Adware-OneStep program from my computer based on info from a site I found on the web. This site required me to turn off the restore program and go into safe mode based on their instructions. This is where my problem started. I found out that while in safe mode I could not get thru to the internet thru my AOL program so I decided to just go back into normal mode and forget about removing the Adware-onestep program. At this point I wasn't able to get out of safe mode. The computer would not let me. Every time I restarted I was put right back into safe mode. So, I said what the heck I'll put in the reinstallation disc and start with a fresh computer. While this was going on, I got a message stating I could not reinstall the OS. I shut the computer down and restarted it and now I am in a sort of perpetual loop where I get this message stating set up s being restarted......and then I get this other message stating that  Windows XP setup cannot run under safe mode. Set up will restart now.  click OK and the loop starts over.    Is there something I can do to fix this issue?    Thanks in advance for you time. Gary    
Cannot reinstall from installation disc.