Ok, when I had this problem a long time ago with my eMachines I just went to BIOS and changed a few boot things around and got it to work, but I do not remember how now, and my friend's eMachines is doing the same thing ..
When we are setting up windows, and you put in the "name of your PC" If you skip or continue no matter what, it will freeze. When we called eMachines a long time ago, we heard this was a common problem, and they walked us through the steps in changing the BIOS, so that you could basically just skip the whole setup.
Unfortunately, I do not have that old PC anymore, and my friends is also old, and does not have warranty, nor the money to get it fixed through tech support (they charge you when you have no warranty).
So if anyone knows exactly what to change in the BIOS to skip windows setup, please post it.
THANKS