Like Pegasus says it looks like you have an Upgrade version that you trying
to use for "CLean Install".

Do you have original OS CD? possibly Win 9X/ME/NT
When prompted for "Previous Version", install original OS CD in CD drive.
Setup will read it and continue. Can put in second cd drive or swap CDs, if
you only have one CD drive.

--
Dennis S.
I''m from Illinois. I hope I helped you. Good Luck.


"JRW" wrote:

> Had to replace a bad hard drive. When attempting new install of Windows XP
> Home, Setup loads files, I agree to the licensing agreement, then I get the
> following message:
>
> Setup cannot find a previous version of Windows installed on your computer.
> To continue, Setup needs to verify that you qualify to use this upgrade
> product. Please insert one of the following Windows prodjuct CDs into the
> CD-ROM drive: Windows XP Home Edition (Full Version)... When the CD is in
> the drive, press ENTER.
>
> I do as instructed with a replacement CD purchased from Microsoft because
> they recommended that my original XP Home CD was at fault. Every time I
> press ENTER, as instructed, the same error message as above comes up on the
> screen.
>
> BIOS is set to load off CD-ROM, followed by the Hard Drive.
>
> Thank you, in advance, for any advise you can provide.
>
> Jim
> --
> JRW