Windows 7: Stuck on "Window's Recovery Error/Restart" Loop

Hi all,
I'd like to start out by saying, my computer knowledge is rather basic, so please, bare with me.

I've recently purchased a pre-made desktop. Upon arrival and start up today- I got the window's recovery error screen stating that hardware/software changes may be at fault. I have only the basics plugged in-I have tried unplugging them all and making sure all connections are secure, trying my old graphics card, and even dropping the ram down to 2gb. I cannot start in safe mode, nor window's normally. Whatever I choose, it goes to the window loading screen with the little orbs for about 10 seconds and restarts my computer. And ends up going to the recovery screen again. I have a reinstallation cd, but it wont read it. I have yet to call tech support for the manufacturer, but I am hoping this is something I can fix. Any ideas?

You say your computer is almost brand new...and I would imagine under some form of warranty.

A new computer should not be presenting with the problems you have listed - & we volunteers should not be putting at risk the rights,YOU, the consumer has under that warranty...
Be aware that attempting any subsequent hardware troubleshooting steps may, in some cases, void your warranty.

I strongly suggest that you should seek further advice asap.
Under Warranty terms a duty of care applies.

I figured this would be the answer...just curious if there was something I may have overlooked. Thank you for the quick response.

You are most welcome.
Let us know the outcome please.
Oh! Good luck too!