This is supposed to be a known problem on XP, fixed with a recent service pack. It is a timing & cache issue within the kernel. There is a knowledgebase article at the Microsoft site on how to deal with it. I have had this turn up twice, and I seem to recall the fix was quite complex. I am not sure that just copying the HAL file will actually work: during installation, a temporary HAL is built from a set of generic drivers on the fly as the installer loads. As it investigates the system, it then rebuilds a custom one to match your hardware before it reboots for the first time. If you simply copy a HAL, it might not match the hardware on your machine.

Are you sure you have set your BIOS to be able to boot from CDROM? You should also check the jumper settings on the DVD drive as a couple I have played with don't like to boot if they are not the master drive. Have you no way of blagging a CDROM drive from a friend for a quick fix? They are dirt cheap to buy anyway - why not consider buying one and installing it so you can just get the problem fixed quickly.