You may want to test other hardware on the computer to see if it can boot without trouble: do this yourself, or take it to someone who has the hardware, such as a computer repair shop or a friend. But before you do -
Can you do this at boot?: SFC /SCANNOW : Run in Command Prompt at Boot
try it, it couldn't hurt. Also this lets me know if you can get to this menu.
I know personally I had a bad CPU that wouldn't allow my Windows Vista CD to install correctly. But let me know if you can get to that repair menu.
*Edit - after re-reading your post, it seems like you can get to the menu, but you can't use any of the links inside it as it just hangs at some point. Can you test memory?