Windows 7 installation hangs on 'Starting Windows'

I have recently upgraded my complete system hardware and cannot seem to load Windows 7. The setup begins and loads the windows files and then when it gets to the screen 'Starting Windows', the hard drive and the DVD ROM lights stop blinking and the installation just freezes.

I tried to boot my old drive with Windows XP and it shows the windows loading screen and then, for a moment shows the Blue Screen(BSOD) and just restarts. I am however able to boot in Safe Mode.

My system specs are as follows:

Gigabyte M68MT-D3 , dual BIOS

AMD Athlon X2 250

Mercury 2gb DDR3 - 1333Mhz, 240 pin long DIMM

MSI N210 1gb DDR3 Video card

Segate 500gb SATA

Any help in this regard is highly appreciated.


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