Have you checked the Event Viewer to see what was causing the issue?
Are there any driver problems (yellow exclamation marks) in Device Manager?
Which Windows Installer have you got on the machine? If you haven't already, make sure to use the newer Windows Installer 3.1 v2 from the link below. Download the file at the bottom of the page and run it to install the newest installer.:
Hope this helps.
i recently installed xp pro spent hours downloading all the updates and drivers finally finished, then decided to install simcity 4 i put the disk in, autorun begain then nothing, after searching around in taskmanager i found a process 'simcity4_uninst.exe' compusing huge amounts of cpu as nothing was happining i ended it and the installer started, after i tried the ati drivers which had previously installed fine however just after double clicking nothing happened and again there was a process using large amounts of ram 'regpermwriter.exe' i ended it and the installer started i have experinced the same with other things however some installers seem to work fine but some do this strange hanging i ahve no clue what it can be my processor is a pentium d 930 which is the only hardware which may be related however i can not figure out what, i wpuld be grateful for any suggestions, also renistall xp produced the same results and they began after the same period of time roughly, sorry to be a bit sparce in details but im busy i will try to expand later:)