System Recovery won't work-Vista can't log in

Hello

My 3-4 year old Sony Vaio (Windows Vista) VGN-CS110 Laptopwas working fine until this morning. I turned it on and it won't log into Microsoft and keeps rebooting. I recently had heating problems with my laptop and got my fan replaced. I didn't update anything on my computer and I don't understand what's happened to it. Everything loads extremely slow.

I've tried to put my System Recovery Media Disc in and the computer doesn't seem to read it at all. I tried to restore my computer to its original factory settings but I can't. I'm very bad with computers so I really have no idea what's going on.
Please help me. I don't know what to do. I'm willing to delete all my data, pictures, and documents as long as my computer begins to function again and I'm able to use Microsoft again.

Here are the series of events after turning on the computer (happens every time now):
1) The Vaio logo is displayed for a long time and at the bottom of the screen says "Press F12 for network boot." I am unable to get into Safe Mode (F8), BIOS (F2), and when I press F12, nothing happens.

2) The screen turns black with a small flashing white bar in the top left corner and stays there for a long time.

3) Two options are then displayed: "Launch Startup Repair" or "Start Windows Normally"
If I choose "Start Windows Normally", the loading bar with Microsoft Corporation displayed at the bottom loads for a very long time and then the laptop reboots again, repeating steps 1#,2#, and 3#.

4) If I choose "Launchh Startup Repair", the screen turns black again with a movable white cursor. This remains this way for a long time until the screen turns blue, still with the movable white cursor.

5) After a few more minutes, the System Recovery Options pop upand says, "Select a keyboard layout" in which I choose "US" an then click "US."

6) The System Reovery Options appear again and ask me to select an operating system to repair. But there are no operating systems listed and when I click "Load Drivers", it say, "Insert the installation media for the device and click OK to select the driver." If I click "OK", there are a bunch of files in my computer. Under "Computers", my harddrives are "Local Disk (C:)", "Boot (X:)", and "Recovery "E:". After inserting my System Recovery Media (to restore my computer to factory settings), under "Devices with Removable Storage", it says "CD Drive (D:). But when I do click the "CD Drive (D:), it says "Insert a disc" when I already have.

7) Without choosing anything and without loading drivers, I click "Next" and then more System Recovery Options are shown. It says, "Choose a recovery tool" and gives me the following options to "Startup Repair", "System Restore", "Windows Complete PC Restore", "Windows Memory Diagnostic Tool", and "Command Prompt."

~ "Startup Repair" ~
Startup Repair takes so long and even after coming back after nearly fours, it is still searching. Should I still leave it up and check back after many hours?

~"System Restore~
When I click "System Restore" (Restore Windows to an earlier point in time), it says "To perform an offline System Restore, you must specifiy which Windows installation you would like to restore. For example, if the installation located in 'C:\Windows' should be restored, enter the following command: rstrui.exe /OFFLINE:C:\Windows".

~"Windows Complete PC Restore"~
If I click "Windows Complete PC Restore" (Restore you entire server or personal computer from a backup image), it shows up after half an hour. It begins to scan for backup disks. But I don't have a backup disk. If I click "Skip", it says "A valid backup location could not be found. Windows cannot find a backup on this computer. Attach the backup hard disk or insert the final DVD from a backup set and click Retry." If I click "Cancel", I'm only given a chance to "Restore a different backup." After clicking "Next", I'm shown a blank graph of the location, most recent backup, and Computer with an "Advanced" and a "Refresh" button. If I click "Advanced", it gives me two options: "Search for a backup on the network" or "Install a driver."

~"Windows Memory Diagnostics Tool"~
If I click "Windows Memory Diagnostics Tool" it gives me two options: "Restart now and check for problems" or "Check for problems the next time I start my computer."

~"Command Prompt"~
Only the command prompt seems to work. Bu I don't know what to type.

I'm sorry I wrote so much! I'm terrible with computers so I tried to be detailed as possible. Safe Mode and BIOS doesn't work. I'm really scared. I'd really appreciate it if you would help me find a solution for my problem. If you can, could you please lead me through it step-by-step?
Thank you very much.

,Cindy