It will not. I get the same error.
See if it will complete the setup by putting the cd back in.
Should I try safe mode as gen suggested? I do not have a Windows CD with sp2. Mine has sp1a. Maybe if I can start in safe mode I could burn sp2 onto a CD and then install it, but I don't think safe mode will work.
I wonder if I did install a new motherboard and re-ran the repair install again that it would fix it. I don't know, I'm lost.
this has turned nasty unfortunately!