Verifying DMI pool data freeze

My son's ACER T180 desktop running Windows XP Media Center Editon freezes at 'verifying DMI pool data'.
There was no change in hardware or new programs installed.
My son said that he ran Microsoft Security essentials and some viruses were found and cleaned and now it won't go beyond the verifying DMI pool data message.

I have done the following to no avail.

1) removed CMOS battery and reinstalled after several hours.
2) tried reinstalling operating system from ACER recovery disks.
3)tried using WIndows XP installation disk from other computer, but once in recovery mode it asks for admin password, which I don't have.
4)booted from hard drive installed from other computer and it boots up correctly and shows original hard drive as working fine.

It think that something is wrong with original hard drive, but I thought reinstalling using acer recovery disks would fix it. Should I format orginal drive partitions and then reinstall operating system using acer recovery disks.
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More about verifying pool data freeze
  1. The problem was the master boot record on the hard drive was corrupted. I ran fixmbr and it fixed the problem.
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