You need to reformat the hard drive before installing XP. I suspect you still have some of ME in place.
Check out this site. http://support.microsoft.com/kb/324103 Mentions a boot sector virus. If thats the case your hard drive is a paperweight.
Lastly running XP with a 667mhz processor will be an exercise in frustration. The amount of memory you have is OK. XP will run minimally on 512mb, better on 1 gig, and optimally on 2 gigs of memory. ( Which I have)
Absolutely I have ME left over. The XP setup did not complete, so I still can go to ME, which I am in right now.
Oh, I don't know about that. If you keep the number of processes loaded at startup to a reasonable minimum and you aren't doing gaming, video editing, or other processor-intensive tasks, XP can run fine on a 667mHz machine. In fact, I've got it running at home on a box that runs at 500mHz. It's marvelous for running MS Office, surfing the web, and playing solitaire. =]