Just a little update on what I did when I had this issue. I was trying to install XP and came across this hal.dll error. The problem was the XP installation was installing/formatting over the little 128 MB "space" between the potential Windows partition (partition 3) and the OS X partition (partition 2).
Luckily I the Vista DVD is much smarter than XP and just reformatted partition 3 to NTFS and left the 128 MB space alone. Took the DVD out after it reformatted, put in XP disc, and it installed perfectly.
Then an hour later after realizing how crappy and old XP is, I installed Vista.
I've only ever had this "hal.dll" problem with trying to install XP.
Luckily I the Vista DVD is much smarter than XP and just reformatted partition 3 to NTFS and left the 128 MB space alone. Took the DVD out after it reformatted, put in XP disc, and it installed perfectly.
Then an hour later after realizing how crappy and old XP is, I installed Vista.
I've only ever had this "hal.dll" problem with trying to install XP.