What is the make and model of the computer?
The manufacturer may have multiple Recovery Options.
Does it always fail with the same error at the same time when you reboot the Recovery CD?
Errors during XP setup are usually hardware. Pooler errors are quite possibly RAM or perhaps the hard drive itself.
RAM can be tested with MemTest:
http://www.memtest.org/
If you can find (or know) the manufacturer of your hard drive their web site will have a diagnostic utility to test your hard drive for mechanical faults.