OS Damaged?

This may not be the correct thread but since I was running a 7 utility to attempt to address the issue I decided to post here.

I was playing a game earlier tonight and about a half an hour my system crashed after some sound distortion. Attempts to reboot met with failure as it would go through BIOS and even my Acronis software would load showing me where the various folders and disks were but refusing to load my external HD where my partition backup was.

To the point: I have a 3 partitioned drive. One of which is 7. XP failed to get past the loading screen after going blank the few times before i would click on it. Also noticed the PSU fan did not appear to be turning.

Windows 7 start up repair tool is currently looking for errors but so far as yet to finish whatever it is it's doing. First I thought a mobo failure from the lack of spinning fans on the psu then I thought perhaps a hard disk failure except everything appears to still be there just the OS refuses to load. Windows Memtest seems to have passed without incident but I was not there to see the results. Not sure if this is a hardware versus a OS failure.

I'm not sure if I should just let startup finish what it is doing or throw in gparted and wipe everything then do a slow reinstall.

If it helps I could include the report I had Acronis generate.

Edit:Short time later.
Windows 7 Start up repair failed something about a patch preventing the system from starting. It tried and failed a system files integrity check and repair. Error code was 0X2
This might be significant as one of the last actions I took before the problem happened was rebooting under Windows XP after an update applies itself although things became slower.

Edit 2:A shorter time later! Windows 7 partition side lives! Not sure about XP though despite failing the start up thing. I unplugged a box fan on a power outlet near the computer and it started right up. Not sure why that would have caused it not much of a draw. I guess that means I won't be running the AC in this room this summer either. Now that everything is up and running I wonder where I can glean where things went wrong aside from the event manager.

LAST edit I promise: It appears I spoke too soon. Windows 7 booted to the desktop but task manager would not work nor would the items on the desktop load just the wallpaper. XP seems to be functioning fine however. The 7 installation was clean not sure what might be wrong with it.

In XP it seems my CPU is running at 60-61c and my GPU at about 74C and Core at 74C as well. Inclined to think this is an overheating issue now but am unsure whether I can RMA my PSU.

Oh how I yearn for the day I have enough to build a new system.