Widows XP install, hangs at Setup is Starting Windows. Is this a hard drive failure?

Windows XP, over about 5 day period started to freeze at various times, boot up or just running OK.. then lock up. So, I’m trying to do fresh install of Windows XP from original disk. Files load, then “Setup is Starting Windows” at bottom in white bar, sits there forever. Retail XP CD, been used for install about 10 times. Would this indicate HD failure? One year old ASUS P5QC, three year old Seagate 500 gb HD. Any advice from experinced illuminati would be greatly appreciated.