Setup is [NOT] starting Windows [blue screen hangs]

[Richard]

Using PartitionMagic 8, set up a Primary Partition using their Wizard.
Set it Active and Changed BIOS to Boot from CD.
PC boots from CD, first Checks Hardware then a Windows Setup Screen appears
[Blue with Windows Setup in upper left corner].
Status Bar at bottom goes to Setup is loading files and loads a bunch of
files.
Status Bar then changes to Setup is starting Windows - BUT is does NOT.
I've tried it several times and even let it sit for an hour but Setup never
starts.
Any ideas? Thanks.