Fatal error when trying to restore Windows

Hoping to get some help.. my Dell desktop was working fine today, and then it froze up so I did ctrl-alt-del to shut it down. Later when I tried to start it back up, I got the black screen that says "Windows did not start successfully..."

with the options of start in safe mode, safe mode with networking, last good config, or start windows normally. But no matter what I chose, it took me right back to that same black screen and options. It was like a continuous restart loop.

I got my Windows XP install/recovery disc and booted from it, and tried to repair the install I had. It was seeming to go fine, but then I got to the Blue Windows XP setup page, and it says "Fatal Error prevents setup from continuing- parameter is incorrect."

I have no idea what to do now. If I turn the computer off and back on, it takes me straight back to this page with the "Fatal Error." Any advice?
 
How old is your system? What make is your harddrive? Have you been infected recently?
 
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