It is an extremely hardware stressful procedure, for some reason. It happened to me several times that Windows NT/2K/XP would not install but then run fairly well after installing on other machines, as you did. Try to stress out your PC with very intense CPU workload and see if it hangs, out of curiosity.

Once I could not install XP in an overclocked machine. I had to downclock, install, and then overclock again. And it is till working fine now, overclocked, 24h.
Which kind of begs the question, why were you overclocking a machine that never gets CPU-intensive workloads?

Peter