You must have an installation CD to run repair options...
The error message that you describe is a windows component message and should not have shown up while you were doing a repair option using an installation CD. For that to happen, you must be trying to do repair through the windows program itself and this cannot be done...or...you are not using the correct CD.
To end the cycle and reformat and reinstall you must set the BIOS boot order to boot to CD as first boot option. Then boot to the installation CD and follow the prompts. Do not use any repair options that may show up. Allow the setup proceedure to finish and then delete the existing windows partition and reformat and install to the same.
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