Will you said you got backups of your files and since you can't boot Windows anyway I don't see it would be any worse off other than a new hard drive (which is most likely the culprit) and a new install of Windows.
Deleting the Windows directory only won't do. You either have a bad install, a bad hard drive, or both. This is a little overkill but get a disk wipe utility such as testdisk, copywipe, dban, etc. and clean the disk that way (1 round should do).
All right, I'm using copywipe. It's around 60% right now. Hopefully, the next time you hear from me I'll be saying that everything worked perfectly. But if there's one thing I've learned about computers, it's that that hardly ever happens.
Yea!!!!! It formatted and Vista is installed!!!!!!
Thanks everyone for all the help. Things are finally working again! I really appreciate it.