It's been 13 years but if anyone wonders... I had the same issue with a specific motherboard... confused me profoundly... turns out some few bios providers have an option in the SATA controller settings that says "AHCI mode: Automatic". Meaning, it switches between modes when it detects Windows XP vs. Windows 7. That switch causes restart during OS loading (and that includes the installation CD/DVD being inserted). Set it to "Manual" or "Enabled"... issue solved. That's also required if you want to install XP with slipstreamed drivers (else it will automatically default to IDE mode, always).
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