Laptop will not go past "Starting Windows"

I have a Dell Inspiron 1545
2.1GHz Intel Pentium Dual Core T4300 Processor
4GB Memory
250GB Hard Drive, DVD±R/RW Optical Drive
15.6" Display, Integrated Intel 4500 MHD Media Accelerator Graphics
Genuine Windows 7 Home Premium (64-bit)

It stalls at "Starting WIndows" waits there for a few seconds, then flashes a blue screen for abou a second, and then reboots. If I attempt to launch Startup Repair, it displays the "Windows is Loading Files" screen, the goes to the windows 7 splash screen, you know the blue background you have at the logon screen, I can freely move the cursor, but nothing happens after that. no window appears, or anything. Also, you can hear the harddrive stop working once i get to that screen.

When i put in my OS disk (tested working on 2 different computers) it stalls at "Setup is Starting"

Ive tried reverting bios to default settings, didnt solve the problem.
Any help is greatly appreciated
 
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