computer in infinite loop- can't start windows xp

I was doing a Repair Reinstall for the 3rd time since my computer kept freezing and getting blue screens. The Repair Reinstalls seemed to work the first 2 times until I shut down my laptop (Inspiron 700m), then it would freeze again. I was trying to backup my hard drive but while verifying the disc, it froze. So I tried doing the repair reinstall and it froze while there was 34 minutes left. I kept on shutting down and restarting and it would continue but then freeze around 34-37 minutes. Finally after multiple shut downs and restarts it wouldn't even go to the window that shows the progress. It would only go to the screen with blue background and Windows XP logo that says "Setup is being restarted...." Then a black screen, then an error message "Not enough virtual memory or paging quota is available to complete the specified operation." Then it would loop back to the restart process: Dell logo, Windows XP logo, Setup is being restarted page, then error message. Most of the time it showed that first message but sometimes it shows "A write operation was attempted..." and "Insufficient system resources to complete the API." I couldn't catch the end of that write operation message since it just flashes for a second and then loops back to attempt a restart. I called Dell hardware support and they determined it wasn't a problem with the hardware. So now I have to call software but don't want to pay the extra $$$! Any suggestions? The current message being shown now is "Securities account management failed because of following reason: The media is write-protected..." and more stuff but i can't read it b/c it just flashes for a second.

I don't know what this write-protected business is, maybe it's trying to complete the action of burning/verifying the cd since that was the last thing it did in windows? any help would be MUCH appreciated! i really want to be able to get into windows so i can finish backing up my stuff. thanks.