Hi heleonardman, I know it's a big pain, buuut I think nitroman84's advice to use Partition Magic is the way to go. This way you'll start from a drive that is basically like new and completely blank. Things should go well for you.
NOTE: I had the same problem with an XP reinstall once and had to reformat/repartition before it would "take". It worked fine afterwards. Good luck!
Another thing to consider is that you have a bad HDD too.