PNF_LIST_CORRUPT or IRQL_NOT_LESS_OR_EQUAL

Hello!

Ive been having a problem with a pc that my friend gave to me. its a Medion ( microstar) laptop, model fid2030 md6442. So my friend told me he had lot of bsods and its too old pc to repair. It works good however, runs without lag.

So heres my problem:
When i try to install windows xp when i get to hdd options i get a bsod containing pnf_list_corrupt. I learned that it probably is bad hdd or ram. The hd works fine becouse i get the same error when the hd is removed and trying to install to a flash drive, so i guess its bad ram. I went to used computer parts shop and asked for spare 256mb ddr pc2700 ram, and asked about the error pnf_list_corrupt. He told me to clean the contacts of the ram with a pencil rubber. After that it amazed me, i got through half of teh setup and at approx 58% of installation files coppying to my hd i got a bsod containing IRQL_NOT_LESS_OR_EQUAL. Im at loss now, i dont know what to do, should i buy new ram? I also searched the net for the irql_not_less_or_equal error and it said that it may be becouse of poor cooling, could that be the problem becouse theres no heatsinks on the chipsets and the processors cooling is also rubbish.

Please help!
p.s.sorry for my bad english
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Computer spec's:
2ghz pentium 4,
256mb ddr ram
30gig hd

Could be any hardware or driver. The issue is not limited to bad RAM, though if only 256 MB, you do not have enough RAM for WXP SP2.
If the hard drive is really old, you might try another drive, as well. But I the bet is on the inadequate amount of memory. You can get fine Buffalo memory at www.directron.com 512 MB for $21.99 and 256 MB for $16, if cost is a problem

but you see, the computer used to work well before, idk my friend sais that one beautifull day he got a bsod and from then on it was impossible to reinstall windows, and the only os that i tryed that booted up (also ms-dos) was puppy linux ( witch is working atm)