Dell Inspiron E1405 factory settings HELP PLEASE!

I am trying to set my laptop back to factory settings.  I tried to go to the dell setup screen and presses F8 and the set up choices came up.  I selected repair system and it took me to a login screen to type a user name and password as other user.  I am not sure what the password could be and tried everything I could think of and nothing takes.  So i tried to do it another way.  I went to my computer and went to the recovery (D:) drive and selected tools then selected PC restore.  It asked me if i wanted to set my PC to factory settings and reformat hard drive.  I select yes and it began to reformat.  Everytime I tried this it stopped and says there is an error.  Is there anything I can do to fix either of these problems? or anything I am doing wrong to set my laptop back to factory settings?

Thank you very much for your time

Jim