Peace's method: I've had a similar result on one occasion. On my wife's old computer, I removed all the chipset-specific hardware devices, powered down and swapped the drive into the new system. Then, for some inexplicable reason (temporary insanity?), I hit F8 and chose to boot in safe mode, and had the exact same scrolling white bar/lockup result. However, when I hit the reset button and allowed it to proceed normally, it booted no issue. All I can suggest is, make sure you've removed *all* the chipset-specific drivers, including the IDE controller, USB hubs, PCI bridges, even onboard sound and video devices to be certain.
XFan's method: I've never used it, merely because it takes longer, but there's certainly a lot less to go wrong. It's somewhat troubling that it doesn't work, so I'd check all hardware thorougly first.
Are you sure the HD is being recognized properly? Detected with correct size, cylinders, heads, etc.? The I-Opener is notorious for incompatibility issues with various drives, and not even consistently. Most of the time, it fails to detect it completely, but your problem could be unique.
As well, similar problems could occur with various CD drives, though I don't know of any specifically. There could also be a hard disk error; if you've reformatted and it still fails, it might be a physical error. It could also be that your WinXP install CD has an error, and that can vary depending on the CD drive you use as well.
Lastly, you might also check your HD cable; I've had otherwise inexplicable errors solved with a cable swap.
Hope I've helped without completely confusing you.