Viruses and Spyware with Bootcamp

I know that when running Windows Xp on my iMac it's becoming vunerable to all the normal windows viruses and spyware.
My question is, and I'm sorry if I sound stupid, I just don't know much on this, but if I never go online while running Windows Xp, if I don't use any browser, open any webpages, and even install some virus protection program, can my computer still become infected?

Well if the iMac is not connected to the interntet No it cant become infected. But if the imac is still getting a connection then yes you can get a virus.

I think I have a bigger problem.
Windows installs, computer restarts, and it brings me right back to the beginning of the installation to do it again.
If I take the disk out before it restarts it says:
"No bootable device -- insert boot disk and press any key"

I tried taking the disk out and restarting while holding down the option button. That brought me to a gray screen. I inserted the Mac osx disk, and the installation comes up. However, when it gets to the part where it asks me what hard drive I want to use, no hard drive comes up to be selected.

Did I screw over my imac?
I really hope not because I've only had it three days.

If your HD isn't showing up in the installer, it is likely that it is damaged. Take it to an Apple store or give Apple a call to see if you can have it repaired. That would be covered by your warranty, so the repair shouldn't cost you anything.
Personally, I would take this as a sign and I would stay away from BootCamp. It is still beta, afterall. :black:

So, they will cover it even though I was messing with bootcamp?

Just take it to the Apple store and tell them your Mac's HD isn't showing up and they will fix it. The HD is hardware and thus covered by warranty.

Hold down ALT while booting your machine and it should bypass the "normal boot process" you go through that's asking you for a system disk.

You can then enter OS X. My guess is that your copy of Windows XP isn't the "full version" with Service Pack 2 (not an upgrade, or OEM) and it's having issues with Boot Camp's backdoor.

I think it's hold down ALT.. Maybe it's hold down V? or X.. something weird like that.

As far as Spyware, you only get infected if you are browsing sites that don't care about your well being. Use Firefox (or set up Internet Explorer's security settings so it isn't downloading everything without your realization as it basically is set as default), or yeah just don't browse the internet at all on your Windows XP boot.