Windows XP virus attack

I am fixing a computer for a friend. He knows nothing about computers, so the information I was able to get from him was very limited.

The original problem was that nothing would show on the screen. He told me it worked fine for a couple years and it's exactly how he bought it (used) from a shop, then windows suddenly stopped loading and it would only show his background and he couldn't use his mouse.

I asked him if he got a virus and he said he doesn't know.

Then he said a while after it started doing that it would just show no picture.

I looked inside of it and the graphics card wasn't fully installed, so I secured it in and the video began working, but still no icons.

I could not use my mouse or keyboard, so Task Manager is out of the question.

Then I looked at his R.A.M. I noticed on of the R.A.M. sticks was also not fully installed.
I secured in the ram, powered it on, then the computer just beeped twice and didn't boot.
I inspected all of the R.A.M.s closer, and noticed they were all different types of R.A.M. and none of them are the correct type. I guess since only one stick was fully installed the CPU didn't recognize the wrong R.A.M. before or something.
I inspected the motherboard for damage, and didn't see any visible signs of damage so I bought some new R.A.M. (1GB) that is compatible with his computer.

I tried booting again, and the computer booted but once again did not register my mouse and keyboard and did not load anything but the background.
I tried booting into safe mode, and I was able to acess safe mode.

I ran Advanced Systemcare and fixed alot of errors.
I removed as many programs as possible.
I took off all of the non essential start up processes.
I noticed the slowPCfighter virus, and deleted all of the files I could find.

I restarted the computer and my mouse and keyboard now work, but instead of just loading the desktop it gets stuck loading right before the desktop shows, where it says "loading your personal settings", but safe mode still works.
Since it doesn't quite get to the desktop, I can't use task manager or install programs.
There is no antivirus installed, and since I can only use safe mode I can't install an antivirus.

I tried reformatting the computer and it always gets stuck and says

"File <different file name every time> could not be loaded
The error code is 14
Setup cannot continue. Press any key to exit."

I want to get a new HDD as a LAST RESORT because I do not have a hard disk besides the one in the computer.

 

There are a few suggestion here:
When i try to load windows xp home i get the message "File setupdd.sys could not be loaded error code 14 help - Yahoo! Answers
Do you have another install CD you can try, or can you create a new one?
If all else fails have you tried a repair install from the CD?
http://michaelstevenstech.com/XPrepairinstall.htm

 

Personally, I'd cut your losses and reinstall the OS. Backup all personal data and start fresh.

 

pretty sure that is what he did, Greg.

To the OP, that error often occurs because of bad media as Josea pointed out.

Get a new xp cd (correct version for your key) and reinstall with that

 

Probably not worth a new hard drive. SATA or PATA? The fact that you bought just 1 GB of RAM make me wonder just how old this notebook is?

 

I had that same problem not to long ago when trying to install xp on an old computer. I even tried 3 different XP discs i had, got the same error with different file names at different stages of the install. It turned out the hdd was bad.
I suggest going to the website of the hdd manufacturer (wd, seagate, etc..) and download their hdd test CD, boot from it and test the hdd to see if it has gone bad.