i cant reformat my computer at all, is it brain damaged?

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i have a windows 98se computer, that one day i turned my computer on and logged in, soon as i pressed enter a blue screen came with some error message and numbers, it says press any key to continue, which i tried nothing heppens. so i restarted. thats where i'm stuck.
ok, when i start my computer it says invalid systemdisc or insert bootdisc. i put my recovery floppy disc in (i think thats my bootdisc) to master reset my computer to fresh factory settings. when it says to insert cd 1 in (by the way i have packard bell computer) it does the thing what it should do till when it starts to extract from the cd it says extract error 1 then extract error 2,,3,4,5 and so on till it says insert disc 2 in, it does the same thing and finally says "succesfully completed", which it didnt because when i restart the computer it says invalid system disc or insert bootdisc.

what the hell is going on with my computer??

i can see the dvdrom drive read the cd because the busy light flashes when reading. i also did cd check using my computer cdrom drive for errors thers no error found in both disc, cd one has very little faint scratches on but it worked before so many times without a single error, i also got backup copy of cd 1 with no scratches at all.

my computer broke at the wrong time when i need it the most now
whats wrong with my computer?? ,i also have windows 2000 cd, dut no boot disc for it, anyways how can it be fixed??
 
Download the CD image from www.ultimatebootcd.com
Run a memory test and hard drive diagnostics. (You need to know what make your hard drive is)
If these check out OK and you don't mind losing all your data then use one of the HD wiping utilities and let the zer out the beginning of your hard disk (just run them until 1% through)
Now try your recovery CD again.
 
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