You do not need a password at all to format the computer unless it is
the BIOS password.
Since you are getting past the BIOS it is not the BIOS password.
Therefore you are doing something wrong.
Do NOT go to the Recovery Console, that may be your mistake.
Go back a read the directions carefully and find what you are doing
wrong that is asks for a password.
As for the Stop error you get go here and find "8e" on the right
column.
Follow that carefully.
You say "nuthin worng with the memory" therefore we can assume you
have gotten the same result with all different memory.
The fact memory may work with a different OS is not relevant.
You also may have a bad CD.
However from what I see, you have at least 2 issues:
1. You are doing something wrong.
2. Probable hardware issue...you want to remove EVERYTHING not
essential to installing Windows such as:
Sound card
NIC
Printer
Scanner
Etc.
Lastly this is not a security issue, you should take this to a Windows
XP newsgroup:
http://aumha.org/nntp.htm