Can't Repair Windows XP Using Reinstallation CD

I have been trying to recover from a virus attack that apparently corrupted the OS on my Dell Dimension 8400.  I recently installed SP3 and ended up with a bsod and an unbootable system.  I used Method 4 from KB 950249 to remove SP3 and system restore to go back to the last good configuration prior to SP3 installation.  I was receiving error messages and the system was rebooting every 5 to 20 minutes although multiple malware scans reported no further virus infection.  Assuming removing the previous virus had corrupted my OS, I attempted to repair it using the repair procedure described in the Owner's Manual by booting from the reinstallation CD.  The setup program started and ran to a point where it stated a driver it was trying to install was not Windows Logo certified for Windows XP and offered Yes and No buttons to designate if I wanted to install that driver.  Unfortunately, at that point in the repair my wireless keyboard and mouse no longer communicated with the system (the green light on the USB port receiver went out) so I was unable to select either one and continue with the repair.  During a previous attempt the mouse was active long enough for me to click on the No button and setup continued for a few more minutes before a blue screen appeared stating that a problem had been encountered and the system had shut down to prevent further system damage.

I have run systems diagnostics from the CD and it reports no issues with any computer component.  I prefer not to have to do a new install and spend several days reinstalling all programs and restoring data files from my backup.  Any suggestions on how to get the system to perform an OS repair using the installation CD as the documentation says it should be able to do?