It's not uncommon to get stuck at "Loading PBR for descriptor 2...done" when the hard disk goes bad, and your diagnostics have confirmed there's a problem with the hard disk.
If it's a Maxtor, replace it with a different brand and do a fresh install of XP from CD. If it's something else, either replace the HDD or check the manufacturer's website for a diagnostic/repair utility. For example, I've had success with a couple Western Digitals, where their utility has found unreadable sectors and removed them from service. The HDDs were then reformatted, XP reinstalled, and they are still working fine a few years later.
As for the DVD drive, if the paperclip trick won't work when the power is off, then it's either busted or something is jammed inside it.
I suspect that the optical drive is causing this problem. Open the system tower and unplug the power and IDE cables of the cd drive. Reset the defaults in System setup. My gutt feel it should work.
ejn63
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ejn63
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