I have had this problem numerous times in the past where the installation proceeds then ends with the messages:

During the installation of the device.
The system cannot find the file specified
and it goes into a detection loop

HERE is the solution:

Windows 2000/XP has a bug that it cannot properly detect new hardware by *.inf files, if the RunOnce registry key is missing for the following location:

HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\CurrentVersion

This key is often used by installers to execute post-reboot programs, but sometimes they accidentally delete this key.

IMPORTANT: This article contains information about modifying the registry. Make sure that you understand how to backup and restore the registry, in case a problem occurs. Please read the linked Microsoft Knowledge Base article prior to editing the registry.

Go to Start » Run and enter "regedit."

Go to HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\CurrentVersion

With CurrentVersion Highlighted, go to the Edit menu and select New » Key

Name the key RunOnce, leaving everything else about the key alone.

The RunOnce key should now exist underneath the CurrentVersion key.
Once the key exists, Windows 2000/XP stops redetecting the Hardware

see also this article, Driver Install Error - "Class installer"