Driver Links/Common Recovery Procedures

A while back my laptop was attacked by the Windows Security 2012 virus and nearly knocked out my whole system. The fix worked really well for about 2 weeks and then it crashed. It now can only startup with the recovery disk. Although, I now must hold the shift key down when starting up and about every 3rd time it's asking for my smartcard reader. Since I don't know what that means and why it's asking for it , it then just goes into dos and ask for the f10 setup key which actually does nothing but makes the screen go black.

System Windows xp
LAPTOP: HP/ COMPAC
centrino

Help!!

Does anyone have any suggestions or solutions ???
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More about driver links common recovery procedures
  1. Suggestions:

    1. Back up all important Data using any data recovery program like Parted Magic - You can boot from CD (no install required)
    2. Restore factory settings (if there's a provision for that)
    3. If system can't be restored, try to clean with Anti Virus
    4. Else, Format HDD and reinstall windows

    Personally, I would go for format and clean install.
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