Take out the install CD while it's counting down to reboot, and then don't reinsert it until it prompts you to in the second stage install.
Alternately, after you've done the blue screen with yellow progress bar part of the install, and you go to reboot, DON'T press any key to enter setup because that's not the setup you want any longer.
If you make a SP2 slipstreamed install CD, you can also get around that 137GB limitation. Also saves the time and hassle of installing SP2.
I have a new 160 gig harddrive. When trying to install xp pro it says I have to limit it to 137 gig, which is fine with me for now.
It goes through windows setup just fine with formatting, eula, etc.
When it gets to the point of restarting, it keeps going back to the
setup screen instead of letting me go ahead and finish installing
windows. I have never had this problem until now.