Windows may just be corrupted. Test the RAM using Memtest ( www.memtest.org - bootable CD ) and run Recovery by holding the Zero key during power up, or run Recovery from the Windows Boot menu (Press F8 before Windows boots).
A friend of mine threw in one of his CD drives and tried installing Windows 7 and Windows XP and both times it only got so far. Has problems reading drivers in the comp. I think the motherboard is toast.