Windows 7 Installation Stuck at "Starting Windows"

Hi everyone!
I've been trying to install Windows 7 on my ancient machine but it just won't install. I have run the upgrade assistant on the machine which currently runs on Windows XP SP3 x86 and it said the PC was compatible.
First I tried doing a clean setup by booting directly from disk, but the setup stopped at "Starting Windows." Next I tried installing by running autoplay, but that installation got stuck at the same point (after the PC rebooted, at "Starting Windows").
I have done a Google search and tried disabling legacy usb support from the BIOS settings, but that isn't working either.
I'd really appreciate any help I could get, thanks!

Unplug all other HD's and peripherals,

Boot into BIOS setup, reset to defaults, save changes. (If an EFI BIOS you'll need to decide if you want UEFI BIOS vs. Legacy BIOS. If UEFI follow these special steps for Install, otherwise enable Legacy BIOS or Compatibility Support Module to proceed with normal install.) Set DVD drive first to boot, HD second, set SATA controller to AHCI, Save changes and Exit.

Then boot into Windows 7 installer DVD or flash stick burned or written using tool and latest ISO for your licensed OS version here. Your installer is suspect so replace it now.

At first installer screen Press Shift + F10, or enter System Recovery Options to open a Command Box, type:

DISKPART
LIST DISK
SELECT DISK 0 (after confirming Windows 7 target HD #)
CLEAN
CREATE PARTITION PRIMARY
FORMAT FS=NTFS LABEL="WINDOWS 7"
ACTIVE
EXIT
EXIT

Next click Install Now, then Custom install to Clean Install Windows 7 to the partition you created. If it fails then report back at which step and the verbatim error message.

In addition read over these steps to understand the tools and methods which work best to get and maintain a perfect Clean Reinstall - Factory OEM Windows 7. The steps are the same for retail.

After install you can adjust partition size or Create new partitions for data, etc. in Disk Mgmt. You are creating the partition here for the purpose of wiping the HD and marking Active which overcomes certain install failures.

Hey gregrocker!
I really appreciate you trying to help, but I don't think you understood my problem. I am unable to get past the first "Starting Windows" screen (the one right after "Press any key to boot from CD" and "Loading Files"). The windows logo appears and it just gets stuck there.
I tried doing everything else you suggested except the shift+F10 thing on the first installation screen (because the first installation screen didn't come up) but nothing happened.
I know there's nothing wrong with my installer because I actually tried with two discs. Both got stuck at the same point.
I would also like to inform you that I did a clean install of Ubuntu 12.04 LTS on this PC and tried again, but nothing happened. I'm currently using Ubuntu, but it would be nice to have Windows 7 running on this.
Thank you again :)
Hope you can get some sense out of this!

I'd still try another disk using the latest official ISO burned to DVD using the tool provided in the troubleshooting steps I gave you. This will make it clear if it's the disk.

If not then I'd run the HD maker's HD Diagnostic extended CD scan
so you can confirm the HD condition and then use the Quick Wipe feature most have.

Otherwise you can burn to CD free Partition Wizard to run Partition Wizard Wipe Disk - Video Help.
This will force the install to load if its sound.