Need SERIOUS help

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I have a Gateway 820 GM using windows xp media edition that wont boot. I do not have a windows CD with this pc, only a restore disk from factory that i have used about 100 times. The best i can get is either a corrupt/missing windows\system32\config\system error message or if i do get it to windows it wont even get through set up before crashing again. I am only slightly computer literate but dont have the funds to get a repair. Any suggestions that could help please let me know.

Thanks
 
Test your RAM with Memtest86+.
Test your hard drive with the diagnostics utility from the HD maker.
 
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