Did complete reinstall of XP still having problems is the hard drive bad? On boot, system file is missing or corrupt.

I was getting blue screens so I did a format and reinstalled XP. Still got blue screens and at this time I installed a new sound card. After installing the new sound card for a few days I started getting a burning smell from the psu so I took out the sound card. Blue screens came back so I deleted all the partitions made a new one and installed xp onto it. Now I'm getting Missing or Corrupt system file errors at boot and computer wont boot anymore. I don't know what the problem is I even did the Recovery console steps of deleting the boot system files and remaking them and nothing worked. 

Is it my hard drive that's messed up? maybe burning smell from psu cause it? Or is it only the psu causing the problem or both or what!? Help please