Auto Run not running?? can't install. HELP!!

Hope you guys/gals might be able to lend a hand and help me figure this one out.

I just recently acquired a hand me down X22 so I decided to rebuild it. I formatted the drive and did a fresh install of XP. XP complete without any error and it seemed to be smooth sailing.

Next I decided to install Office, but got a "setup.exe - Entry Point Not Found" error. Description: The procedure entry point DefWindowPrgcA could not be located in the dynamic link library USER32.DLL. At first I thought it might be a problem with the CD, but it works on my other machines.

I then tried to load Norton and got a "NCDSTART.EXE - Entry Point Not Found" error. Description: The procedure entry point GetEnvirofmentStrings could not be located in the dynamic link library KERNEL32.dll. Now i'm getting more confused. I tried other software CD and everything returns with a similar error?!?!?!? However, I am able to read and execute ALL the files on the CD rom from windows explorer except setup or install files, which would give me this "Entry Point Not Found" error.

I then try swapping the Hard Drive from my X22 with an identical X22 of a friends and I can install to my drive. My friends HD got the same errors as mine on my X22. This leads me to think it is hardware, but i'm not sure. Are any of you guys familiar with this one?? Any lead and help is much appreciated.

Oh and all of the experiments that I had mentioned were done using the same media bay/dock.

Thanks!