installer won't start, can only get busybox

I am trying to install on an Ibm I series laptop with 697mhz celeron processor, 128MB Ram, and a 9.5 GB HD. Currently XP is installed on the system but I want to replace with Ubuntu. When I boot from the 6.06 CD I got in the mail the system will bring up the boot options screen (start or install, memory check, etc.) If I choose "start or install" the Kernal will load and a screen with the ubuntu logo and a load bar will pop-up. At the bottom of the screen a message will appear "Loading key drivers ok" then it will say it is trying to mount, after 2 minutes the screen will go black and the following message will appear:
     [17179828.008000] irq 15: nobody cared (try booting with the "irqpoll' option)
     [17179828.008000] handlers: [<c02521a07>] (ide_intr+ 0x0/0x200)
this message will repeat over and over periodicly with different numbers between the brackets [17??????.??????]. I have tried pressing F6 and changing the boot options from:
Boot=casper initrd=/casper/initrd.gz ramdisk_size=1048576 root=/dev/ram rw quiet splash--
to
Boot=casper initrd=/casper/initrd.gz ramdisk_size=1048576 root=/dev/ram
this causes the screen to go black a series of lines wizz past then the same error message pops up then it says:
Busybox v1.01 (Debain 1:1.01-4ubuntu3) built in shell (ash)
enter 'help' for a list of commands.
I can enter the commands from the list (although I have no idea what they do ) and the ide error message continues to pop-up.
How do i get the installer to run? do I need to use the windows install disk to reformat or partition the HD so there is a place for Linux to take hold? Can I use busybox to install linux and more importantly the GUI? Help!