problem with reinstall of XP

Brief explanation. I purchased a generic brand laptop and loading xp myself. I had no problems whatsoever until I bought the game Medival II. While I was playing the game, as I had before, it suddenly froze my laptop. I was forced to turn off the power and restart. When I did that, I was able to see the bios screen and enter bios which still seems to recognize everything correctly in the laptop. But when bios is finished and XP should start to load, nothing happens. Just a black screen. I finally got to the point that I decided just to reinstall. Upon attempting to do so, I get the following error message after it attempts to load the setup files from my XP CD:

CONFIG_INITIALIZATION_FAILED

with the following technical information found:

STOP error number:

0x00000067 (0x00000001, 0x0000000E, 0xc0000034, 0x00000000)

It does this everytime and I don't know what I can do now. I can't find any info about this on the microsoft page at all. I don't know if this is a hardware error or not. I hope it is hardware, because that is the only way it would be covered under my warranty. Any info or ideas anyone has I would appreciate it.

Thanks for your time.