Windows Error Recovery - Inspiron 1545

Hi all,

My laptop froze up and I restarted it by pushing the power button.  When rebooting I was taken to a black screen saying "Windows Error Recovery" and provided with 2 options:

1/   Launch Startup Repair (Recommended)

2/   Start Windows Normally

If i select option 1, i am taken to a blank black screen in which the only way i am able to exit from is if I push the power button.  

If i select option 2, the windows loading bar shows up but in the end takes me back to the Windows Error Recovery screen.  I have tried both options over and over again but end up with the same result.

I have tried loading the OS recovery disc, but this does not boot.

I have had the laptop for 4 months now.

please HELP!