Cant boot... keeps restarting...BSOD error

I am using a HP Pavillion dv6500 laptop, running Windows 7 Ultimate x32. The laptop was purchased in summer of 2007 so it is about 4 years old.

The other night I was using my computer like normal, and at the end of the night put it to sleep just like normal. The next day I tried to wake my computer, it came on to my desktop, however everything was frozen. I assumed it was just some bug/glitch so I powered my laptop off and turned it back on only to...

Experience a constant cycle of my computer turning on, trying to start, getting to the windows loading screen, and then the BSOD appeared, then automatically restarting only to experience the same thing over and over again. Unfortunately the BSOD only appeared for a slit second so I was unable to write down the error message.

I have tried messing around with the advanced boot options with no luck. For some reason my computer wont let me turn off automatic restart so I cannot write down the BSOD error message. It only gives me the options to:

load windows normally
use last know good configuration
boot safe mode
boot safe mode with networking
boot safe mode with command prompt

I have tried all the above methods and none work... its just keeps repeating the cycle described above.

I then tried booting from the Windows 7 disc. I am able to get to the screen where it says repair computer/install windows. I have tried the repair setting... the screen changes and goes to what the normal repair screen should be however there is no menu listed, and no indication that windows is still trying to load anything. I let it sit on this screen for 30+ minutes thinking it would load eventually but nothing ever shows.

I then tried the install windows option. It brings me to the next screen where I select language US, keyboard US, etc. It then goes to another screen that says "setup is loading" however I've left it on this screen for over and hour and nothing ever loads.

I've spent the past hour searching on Google but havent found anyone with the same exact issue as me. I'm running out of ideas and any ideas would be very appreciated.

(I think I should also mention that I was having issues with my computer a few months back. It would randomly shut down and restart after about 2 hours. I eventually reinstalled windows and that solved the issue. Perhaps my current issue is hardware related? I have been using the laptop fairly heavily (3-4+ hours a day for 4 years).

I should also mention that I ran the windows diagnostic tool, did a standard scan with 4 passes and no errors found.... did a complete/extensive scan with 1 pass and no errors found.

I also ran the windows memory tool and passed that. I ran the windows harddrive (or whatevers its called) tool and failed that text within a couple seconds. Got an error message like x10008 or something. However the strange thing is I ran that same test back a couple months ago when I was having issues with the computer randomly shutting down... I failed the test with the same error message however I was able to reinstall windows and everything was working fine up until the other day....