Well, my nephew and I broke down and contacted Microsoft on a 3-way call. He's 13 and wants to be a tech, so i figured it made sense to have him call and put the ticket in his name and I would assist with the technical side of things.
Anyway, the Microsoft tech told us that the setupdd.sys error is "99.44% memory" related and we should try removing one of the sticks of ram to see if we could identify the problem. We advised that we only have a single stick of 512MB, and he advised that XP sometimes, although rare, has a problem installing on machines with 512MB. My nephew contacted Crucial and told them we needed to return the 512MB stick since it might be defective AND we would like to exchange it for two 256MB sticks. My nephew advised he would need to call back when his mom was available because he knew there would be an additional fee involved (price difference between the single 512MB and two 256 sticks) and was informed that he would be charged the difference in price from the day he ordered, but when he called back the next day to get the RMA number and get a price total, the rep wanted to give him credit for actual price paid and charge the difference between the current price. (RAM has jumped in price again. My sister paid about $152 when we ordered it a couple of weeks ago, but now it was around $190.) My nephew objected, and was told that there was nothing they could do. He called from my house, told me, and I loudly said, "No way!" Tell them they can have the stick back and we will go a computer show this weekend and buy Micron RAM for much less and Crucial can just get the stick back and lose the sale completely. My nephew asked for a supervisor, and the rep put him on hold, then came back and said they would make an exception and charged him about $10 for the swap. Since the price difference should have only been a couple of bucks, i wasn't happy with that, but told him that it would be acceptable. The RAM was shipped out to Crucial on Tuesday for 2 day delivery, and they paid Crucial to overnight the RAM to them, so it should be here on Friday. I'll keep everyone posted on the result just in case this thread may help others eXPeriencing a similar problem.
-al-