Windows keeps loading in Recovery mode but won't finish

I want to start by saying that I thank anyone right now who is willing to help me, because this problem is over my head and I need help. So thank you. I will start with the problems that lead up to the issue.

PROBLEMS Leading to the current Issue

My computer had started running ridiculously slow about five or six months ago. I have a HP Pavilion Desktop with Windows Vista OS(I can tell you more about the desktop if you need to know). On top of running really slow I was starting to have a serious problem with it restarting itself and then just sitting at the start up window until I had to manually power it off. This was the start of it all. Anytime I had to load more than one program, it would take much longer than needed, and often times I would hear the fans running really hard right before it just restarts itself. So I did a diagnostic test and the Smart short Self test Failed along with the Hard Drive test Surface scan test. After I received this message I backup my entire hard drive on one of my external hard drives. Then I decided to do a complete system restore and install less programs and only use this desktop for internet surfing. After my first system restore I only installed programs that I needed and still was running into the same issues with the computer running slow and running the fans really strong right before it reset it self. Outside of the lag time of the computer speed, I was really starting to get worried about the state of the inside of the computer. I'm still a little timid to open the computer, but now I know I have no choice so I'm ready with the proper help. Anyway, I did one last system restore and it froze at 93%. After three hours of setting there, I manually powered it off.

THE CURRENT ISSUE

After powering off the computer, I go to restart the computer. It comes on normally but as soon as the opening screen leaves, another screen comes up and says loading window, but instead of the normal load bar at the bottom, it's the long white bar. After it loads, the computer leads straight into Recovery Manager. It prompts me with two questions. 1. Would I like to perform a system recovery and the other ask if I would like to see other options. If I choose to do the system recovery it gives me an Error code 0x4001001300001002. After I hit ok it just goes back to the start up screen and sits there until I manually restart it. When I choose the option to "See other opitions" it just says that if the problem continues to contact HP support and then restarts it self. I have even tried to go into safe mode and last known good config, but as soon as I hit enter on any of the options it just starts to load into system recovery and does the above mention all over again.

WHAT I HAVE TRIED

I tried to do a complete restore using a vista disc, but as soon as I go to install vista home onto the computer, I get a blue screen every time telling me that windows had to shut down due to possible system corruption. When I try to repair my system using the disk, it says that I need to load the drivers to repair, but it does not see any of them.


I'm sure that I will have to fix the computer using the disc so, I'm ready, but I just need someone to explain the proper steps to getting the A. the computer to stop loading into system recovery every time I start it up and how to possibly do a complete OS restore to fix any corrupted registries.

Thank you so much in advance and I looked forward to solving this problem with the aid of an experienced computer wiz. I understand that this will be tedious, so I ask that you bare with me throughout the process. thank.