Is the disk scratched? If not, it might be a problem with your system. Corrupt files is classic with XP installs where there is some kind of config. error or faulty ram, ect. XP is really finicky and happens to be the most difficult OS to load that I have ever seen. However, it is usually worth it, it is really stable once you get it set up, IMHO.
If your disk is not scatched that bad, I would look at your system first. Oh, is the disk an offical copy? If it is a copy of a XP cd, then that might be the problem. Next, make sure your ram is ok. An XP install is one of the best ram test there is; XP relies heavily upon system ram and if your ram is borderline or bad it will not install. If you have more than one stick, try a stick at a time. If not, go to staples or somewhere with a liberal return policy and try another module altogether.
XP hates perepherals. So, make sure you have a very basic config. when trying to install. Go into bios an turn off everything that you do not need. Take out all pci cards, unless you have a hdd controller add on card or a pci video. Although it is nice to let XP set up your internet connection during install(especially if you use broadband), I have heard that it is better to leave out your nic when installing. If it is onboard, you might disable it during the install.
If these suggestions do not work, I can send you some links to threads on other forums that deal with other issues. I have had the same problems as you are having. In fact, the machine I am running right now simply would not install XP without a file corruption error. Luckily, it was not a file that was needed to continue and I never had any trouble because of it. I think SP1 actually added the file. So, I know what you are going through. If all else fails, get a copy of WK2 and forget it. It is not worth the hassle.