Froze while formatting HD

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I started formatting the HD on my desktop this morning (using the XP CD), and then I came back to check on it this afternoon it was stuck on 93%. I couldn't do anything so I restarted my computer. I keep trying to reformat, but it keeps getting stuck on different area's... This time it's stopped on 66%... I tried doing quick format but it still froze. The CD is fine... its perfectly clean. Once when I booted it up the screen was like scrambled. It was the blue and black lines from the windows XP pro setup window just randomly placed around the screen... Whats going on and why am I thinking this is going to cost money to fix.
 
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