Ideally on another PC running Win 8, create a 'Recovery Drive' and use it to trigger a complete reset of the OS, hoping that the process won't ask for an Installation Disk. Meanwhile the machine is 'not fit for purpose', so I would consider returning it under Warranty...
For Recovery Drive, type 'Recovery' at the Start Screen and choose 'Create Recovery Drive' from Settings. In your case, I would check the box to copy the Recovery Partition, so you would need to be prepared with a 4Gb Flash Drive or a blank DVD disk.
You would then set up your BIOS to boot from the USB/DVD, this will give you access to the Troubleshooting screen when booted from your Recovery Drive and hopefully will be more successful in completing a System Reset.