Crisis point with laptop !! need help pls

i have a problem with with my laptop,

(advent milano
advent intel atom
cpu N270 @ 1.60ghz)
1.60ghz,0.99gb of ram

the screen broke so i attached a monitor,then it loaded in safemode but really slowly in normal! when it got to user accounts it only went to desktop (just the wallpaper visible) no taskbar or progs.

anyway i was advised to load windows xp home (current os) and put in serial no for activation (i used the one at bottom of laptop but it displayed) wrong no? , so i went to bios and tried another os (win 7 extreme) it stated after reaching 12% boot error, so i tried to reload but same problem, whilst it was at 12% the hard drive was making a kind of screaching noise on and off?

then i tried to restart and i have following error

windows failed to start. a recent hardware or software change might be the cause. to fix the problem:
1 insert windows installation disk & restart pc
2 choose language settings & click next
3 click repair your computer.

errors showing

status: 0xc0000098
info: the windows boot configuration data file does not contain a valid os entry ?

can any1 help here?
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More about crisis point laptop
  1. If you have XP and windows 7 on the same drive, it's going to cause problems.
    Back up your personal files if you can.
    Reformat the entire drive and reinstall ONE operating system, not both.

    But it sounds like time for a new computer.
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