A couple of things to check:
You are using 32-bit XP, right?
Are you sure that your "OEM" version is legitimate (i.e., the genuine Microsoft System Builder pack with hologram, etc.? I ask because in the past we've seen people having problems with illegitimate install disks passed off by unscrupulous online merchants as "OEM." Or, sometimes people think they can get away with installing from OEM "recovery" disks that come with Dells, etc.
You mention that you get a message that it wants to attempt to reinstall a file??? This is not part of the normal XP install routine. Please provide the exact message...could it be that your install CD is bad?
Lastly, out of curiosity, what machine are you attempting to install on?