Help! My computer is freaking out (XP reinstall question)?

My computer has had some problems recently with the desktop disappearing and files missing. So I figured the best way to attempt to fix the situation was a Windows XP repair. So I got the the blue screen which asks whether I would like to continue Windows Setup, Repair Windows or Exit Setup. So I tried to repair and it took me to a DOS screen that said something like “C>:”. I had no clue what to type to repair it. So I went to Windows XP setup and it had to format my hard drive. Oh well, I lose my stuff but will have no more problems. I was wrong. So it formatted and went back to that same blue screen so I went to “Exit Setup” and it says Windows has not finished installing. My computer auto restarted and now it keeps going to a blue screen and then it restarts again. My computer is on a never ending loop of restarting. How do I fix this? **Whether I boot from the CD or HDD it keeps restarting. How can I get Windows installed properly and fix this restarting problem?

never pick repair, i done it and it messes up your system, you wont be able to download updates from microsoft, boot from your xp disc again but this time select setup to reinstall the system fully like when you first used your computer