Hi Markgod5,
Thank you for visiting Microsoft Answers.
It seems to be that the hard drive is corrupted so we are getting this error message to running chkdsk.
You may start the computer in safe mode with command prompt and see if you can boot. Then run chkdsk.
To do this follow these steps:
a) Restart your computer if it is powered on.
b) Tap the F8 key after your computer initially powers on.
c) Once you see the Advanced Boot Options menu you can stop tapping.
d) Use the up/down arrow keys to select safe mode with command prompt.
e) In the command prompt window, type the following command and press enter Chkdsk /R and Chkdsk /F
Using recovery DVD, you cannot go into winRE (Windows Recovery Environment) mode to run chkdsk. You need either full version DVD (Win 7/Vista) or Vista repair disk.
You probably won't be able to install win 7 since the problem is with the Hard disk drive and chkdsk has to be run to rectify the error.
Hope the information helps. Please post back and let us know.
Debleena S