Win32 virus cleaned with Malwarebites now permanent blue screen

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My daughter has a Dell laptop and got a Win32 virus on it last night. The Qwest virus protection couldn't get rid of it and she started getting popups every couple seconds from Qwest. I downloaded Malwarebytes, ran a scan and cleaned everything it found. It told me to reboot the computer to finish the cleaning process and when I did, we got the blue screen with the following message:

Stop: 0X0000007E (0xC00000056, OxB9F297c0, 0xBA4CB52C, 0xBA4CB228)
0x atapi.sys F74B87C0 base at F74A2000 DATE STAMP 4802539d

I tried to reboot several times, including Safe Mode and it just takes me back to the blue screen with the error of Windows didn't shut down properly, possibly not enough hard drive space, try and upgrade BIOS.

Any ideas???? I do have a Windows XP CD but I hate to have her lose everything on there if there is something else I can do.
 
Thanks for the info. It worked and looks like we didn't lose any files. It created a 2nd user though on the log in screen. Can I delete the 2nd user or will that screw it up?
 
I never had a second user, but I think you can re-create it after you successfully repair your XP install if you have to
 
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