BSOD WONT REINSTALL WINDOWS REALLY BLOCKED

Hello,
I have a a compaq mini 110c, and i had a runtime error on it, which i tried to solve.
I didnt so I decided to use restore with roxio rollback, restoring to 2009 the point when I bought it. It loaded for ages, so I restarted the netbook, and it came on with a mixture of some stuff on, and some off sort of half restored,
So I restored back, and then I had windows xp screen trying to load, and the f9/f10 black screen looping.
I can now access rollback to go to points but none work, and I have tried to reinstall windows xp from disk with external drive, which tries to load up then crashes to blue screen with STOP error (0x0000007b)0xF7A22524, 0xc0000034, 0x00000000, and wont let me load anymore.
My netbook now says
(windows could not start because the following file is missing or corrupt: <Windows root>\system32\ntoskrnl.exe.
Please reinstall a copy of the above file.
but I can't repair or reinstall windows, and I am at then end of my tether
Someone told me that the hard drive driver needs to be installed with the windows xp disk, but I only have a Windows XP disk so don't know what to do next ?
Sorry so long but thought it was best to give the run down of my problem.
NOTHING SEEMS TO WORK HOW DO I RESET TO FACTORY SETTINGS WITH THIS LAPTOP WHICH WONT LET ME ACCESS ANYTHING
I have done a test of the hard drive, and memory which is in the bios, and it says they both passed so i am hoping it aint hard drive ?!?!?!?!?!

THANKS» Reply