This has not been my experience, and I just wiped my partition and started over from scratch last week.
There
is an error that appears indicating that the driver(s) being installed haven't been tested by Microsoft, and therefore may not be guaranteed to work. This error appears perhaps eight times, and has the button to "Continue Anyway." In the instructions provided on the bootcamp drivers CD, Apple recommends that you click the "continue anyway" button. This is the right thing to do on a Mac or a PC.
Now, sometimes this window will appear behind the box that displays the installation progress. Just move that one out of the way and click "continue anyway."
When you get a dialog box that reads "Found new hardware," just click cancel. You'll get this message when the Apple CD removes the existing default drivers for a device and Windows recognizes that it has a piece of hardware with no driver attached. No worries; it's just that the Apple install program hasn't put the right driver in. It will.
I may have recieved the fatal error you talk about ONCE, way way back when I installed boot camp. I just wiped the partition and tried again, if I remember correctly. Since the network card doesn't seem to be recognized until you install the Apple drivers, I don't think there's anything else that you would need to install before things would be able to work.
One very important question: you are using Windows XP service Pack 2, right?
Mark