Is there any error message displayed at all when the blue textmode screen appears? Maybe if you put a pause at the end of the format section of the system package and run the commands from q:\bin\installw.bat file manually, you may be able to get the error message from the windows installer.
That's the message I was getting the other week when James ascertained (over the phone) that I must have another DHCP server running and I insisted I didn't.
After getting the client to check again it turned out there was... o
DHCP is funny sometimes. This particular DHCP server never responded to the initial requests (IP address, PXE & TFTP), but it always responded to the request for the AS IP address! O_o
I did try running the installw.bat commands manually, but had the same problem. I don't think there is an error message, but the screen is only displayed momentarily before it reboots, so I can't be sure. maybe if I get a high speed movie camera.... ;)