If you put it into an enclosure then that will tell you if there is a problem with the hard drive, it would elimante any other possible causes. And then you also don't need to load windows off of it.
I'm not sure, but it sounds like you are getting at least part of the way into windows, enough to select some options, so if you are doing that without the cd then the hard drive still works, but either files are corrupt or the mechanical part of it is getting weak and only can get it to spin for so long.
But try it on a working computer, see what you can get to. I suggest if you do this you do run some tests on the hard drive (error checking and usual the manufactor of the hard drive has their own diagnostic software which you should download and run)
Seagate -
http://www.seagate.com/www/en-us/sup...loads/seatools
WD -
http://support.wdc.com/product/download.asp?lang=en then select the hard drive type it is (without the enclosure), then download Data Lifeguard Diagnostic for Windows (if you are using windows 98 or newer)
If you have another har drive and can't find the diagnostics software, post back and I'll check for it.