I stumbled upon wannabe1 and quin8484's thread from July 07, where he was having the exact same problems on almost the exact same machine.
I was just getting to a black screen, with a blinking cursor.
I used the Dell Recovery Disk to format and re-install, and actually got back to the original setup of XP.
I was actually kind of lost at that point, and my screen resolution was very low (600 x 480, i think)
So I ran a HELP search on XP, and that was one of the FAQ's, (My screen resolution won't go any higher than, etc)
I tried to follow the steps to increase the resolution by updating drivers, but they were grayed out and I couldn't do anything w/ them.
So I fidgeted around and somehow got the resolution up to 1080 x something, but then it was very grainy. All the icon's and Fonts were no longer giant, but the clarity of the screen was bad. I rebooted the computer, set the boot order back to HDD from CD, and now all I can get to is the Dell Screen, (press f2 or f12), then the Windows XP screen w/ the green status bar, and then it just goes to BLACK.
I'm completely stuck.
Please help me! Thanks