Ok. I wish I would have posted this question months ago when I was still getting the actual error message when booting (corrupted .sys file I believe). Unfortunately, I had to leave the area so I just bought a computer and moved on. I am trying to fix the problem now. I have a sysinternals and bartpe available to me.
Let me know what you need (bootup beeps, exact response from boot, etc) and I will give you exactly what you want. My vista disk had issues when it came with the computer. I had to call the number on the disk and it magically worked. They said the disk had been used before and they magically made it work. I am having the same issue with the disk. I want to see if I can do this without needing to buy another OS.
Right now, I am in BartPE and I ran chkdsk as read only (without the F option) because I didn't want to dig the hole deeper. It says a LOT of files are corrupted in C:
For instance, it says
Correcting error in index $I30 for file 987
Correcting error in index $I30 for file 988
Correcting error in index $I30 for file 1083
Correcting error in index $I30 for file 1095
Correcting error in index $I30 for file 1096
Correcting error in index $I30 for file 1104
Correcting error in index $I30 for file 1112
etcetcetc..