Okay I figured it out.
One of my ram sticks was bad.
There was a 1 GB Ram stick in slot 1 and a 2 GB Ram stick in slot 2.
There was a PC Diagnostics installed that said that one of my ram sticks was bad. I toon out the 1 GB and put the 2GB ram stick in slot 1. I ran diagnostics and it said my ram was fine.
Now there is no more blue screen and Windows is installing.