[DxArtful]

Some seriously nasty stuff has taken out the system on my alternate laptop
The laptop is a Compaq Presario V6120US Notebook Running Windows XP Media Edition
I recently obtained it from my grandfather who knows nothing about internet and the dangers it holds
At first it was running fine. I installed a few things like (Winrar and the like) and noticed one of those Rogues that show the fake anti-virus progams, The system has AVG on it and it triggered a few times, but after every restart i noticed more and more issues
Specifically 3 .dll errors upon every start up
I ran several scans on it AVG again, Panda Safedisk, Malwarebytes, CureIt!, and Spyware Doctor was the final one
The last few were run in Safe Mode when i could actually access it but after the last scan the laptop wont boot in any mode
Regular mode gives me a quick blue screen flash and and automatic restart
Last Good Configuration just goes to a black screen
Safe Mode and any variation of it just loads to safe mode it would freeze while loading isapnp.sys, and sometimes avgrk86.sys
I'm being mailed a Recovery disk, and the F11 Recovery option still works but is there anyway i can access the system and get my programs and such burned, or just replace the corrupted system files? As you can guess i'm a novice at this but willing to fix it myself since replacement is not really an option for me financially with school loans eating me alive.
Thanks in advance for any help you guys may be able to provide!
~Dani