Logon process has failed to create the security options dialog.

Ok, I don't know much here, but I'm having problems with Dell Insprion 1318 laptop, Pentium(R) Dual-Core CPU, T4200 @ 2.00 GHz, 2.00 GHz, 3.00 GB RAM, 32-bit OS.

The screen flashes blask a few times at startup, then runs ok for a bit, then ultimately freezes up under medium to heavy CPU/Drive load, Ctl-Alt-Del does not respond, but a minute or so later the screen goes black, and an Error box is displayed which reades, "Logon process has failed to create the security options dialog." in the blue title box, and "Failure - Security Options" in the white text box.

Ran Extended 32 bit Diagnostics and got the following Error code:

Error Code 0F00:1344, Msg DISK - Block 37125233. Can't read, replace disk

It also reads that the given error code and message can be used by Technical Support to diagnose the problem.

I chose the option to continue testing and got error codes 0F00:0244, and 0F00:1A44, both with the same additional text, "Msg DISK...."

I called Tech Support, but I'm out of warrantee and the guy told me I had to run a virus scan for $59. I have run Norton AV several times including a root scan and found no viruses. I tried to explain whthe steps I had taken, but only got so far as the "logon process...." failure message and regardless of what I tried to explain, the guy kept saying, "You have wirus, we run wirus scan. It cost $59 nominal fee." I finaly got frustrated and hung up.

I hope someone here can actually help me out. From internet searches, it seems this can be HD failure, or might actually be viral.

Please help!!

Thank you.

---Al