Can not boot on new build

Hello, this is my first post and my first build. The system consists of: Gigabyte GA-945GCM-S2C motherboard Intel Core 2 Duo Processor Antec 650W Power supply (2) 2GB Corsair RAM Seagate 1TB SATA 7,200 Hard Drive Sony Blu-Ray BD-ROM Opitical Drive Wireless USB Keyboard and mouse combo After I get it up and running I will add: Diamond graphics card and a tv tuner card. The problem I am having is that once I assemble everything and apply power I am able to access the BIOS setup but not boot the system from an XP cd I have. Yes the copy is legal. I adjust the BIOS to a primary boot from the CDROM. The BIOS detects all the components but when I try to boot it just goes to the screen where it says it can not boot windows and gives the option to boot in safe mode etc.. Then if I don't power the system down it will count down from 25 then restart, go through POST and come to the same screen again. The only thing I could think it may be is the XP disk is bad. There are no scratches so that is unlikely. I have also read on a forum that using a USB keyboard and mouse instead of PS/2 setup can cause problems. Any thoughts would be greatly appreciated.

First off are you using a usb keyboard and mouse. Second if so try looking through your bios for options on detecting and activating usb devices during POST.