Restore Factory Dafault Not Working Help!

Hello,

My Problem here is kind of weird i say... i got attack by a "System Fix" virus(a malware) by which I dunno where it came from, msg showing many defects and hard drive damaged sectors, but when i search the net about it, they say its a malware or some sort os virus which displaying fraud errors, even hiding all files and halts all operations... i tried everything to removed it and i followed some intruction to removed it, and it has been removed and displaying of error message stops.. now i want to restore my system to factory default, i have done all the suggested ways here.. from F8, hold 0 key then power button, i do that but when clicking "Repair My Computer" it hangs and never continue to new choices... i believed that something wrong or not yet fully clean with virus cause by this "System Fix" please help me...

by the way im using Toshiba Satellite A300/windows vista 32 bit.