Trying to Format Windows XP, But Reboot Skips CD Boot and Loops The Setup. PLEAS

Hi There.
I really need help with a problem I am having with Windows XP.

My laptop was working fine last night, but this morning when I turned it on it took me to that Blue Screen with loads of White Writing, you know, "The Blue Screen of Death"?. Anywho, I tried to boot from my Windows XP Home Edition disc to do a repair, this got me past the horrible blue screen, but now, it's going to ANOTHER lighter blue screen, and it says:

"Setup is being restarted......................."

And just reboots. This just keeps on looping. I have no idea what is wrong with it, I have tried the Advanced start up options by hitting F8 such as Safe Mode etc. (I have tried every single one, but it just keeps looping) as well as many attempts to boot from CD by hitting F12, but it just does the same thing. Please help me!!

I don't mind having to format my hard drive, but every time I boot from CD to attempt this, it just loops.

Also, back at the very beginning, when I did the 'Repair' option, I used 'Windows XP HOME EDITION' and I had 'Windows XP Professional' installed on my system, could this have anything to do with it?

I have also tried creating a temporary Boot Disk, but this had failed, I don't think I did it correctly.

Thank you for your time, I'd appreciate any help, I'm desperate! D: