hmmm... is this a upgrade or clean installation? dual-boot with XP?
also, did you try making your dvd drive your first boot device instead of your HDD for a clean install? Another thought, can you disable ACHI mode in your BIOS? maybe changing it to IDE Compatibility Mode may help.
Even tho you have only 2GB RAM, try removing one of the memory modules and see if that works. I have learned from the past that some systems can be really picky about memory when installing a new OS. after the OS is successfully installed just install the memory module again.
a upgrade from vista should work.... here is a link that may help:
http://technet.microsoft.com/en-us/l.../dd446674.aspx
sorry about all the questions... but the more info you give about how your system is setup the quicker you may find a answer :-)