UNMOUNTABLE_BOOT_VOLUME BSOD Recovery discs not working Windows 7 x64

Hi, I have a HP G61-110sa laptop with OEM Windows 7 Home Premium x64 SP1.

My laptop was having problems with its firewall, so after many tries to fix it, I decided to use system recovery to get it back. During the process, after the reboot, I got BSOD with UNMOUNTABLE_BOOT_VOLUME, and under the tech info it wrote:

*** STOP: 0X000000ED (0XFFFFFA8004041650, 0XFFFFFFFFC0000185, 0X0000000000000000, 0X0000000000000000)

I've tried burning a whole new recovery disc and it goes through the 'Windows is loading files...' process, the install windows screen where I choose the language, time & currency and keyboard settings, but the next screen where I can either choose Install now or Repair your computer, is where the problem continues.
If I click Install now, the screen is stuck at 'Setup is starting...' screen & a spinning wheel cursor. If I click 'Repair your computer', the same blue background stays there like it has frozen, but the cursor can move.

I've backed up all my files onto my external hard drive so that's not worrying me.
And there are no attachments cos the laptop wont boot.
Can anyone help?

These problems sometimes occur if the temporary memory is corrupted. Clear your temporary memory:

1. Shut down and turn off the computer.
   
2. Unplug the computer from the wall or surge protector (then remove the battery if it is a laptop).
   
3. "Remove the computer from any port replicator or docking station, disconnect
   cables to printers or devices such as external monitors, USB memory sticks or SD cards, headset or external speakers, mouse or auxiliary keyboard, turn off WIFI and Bluetooth wireless devices." (Use Hard Reset to Resolve Hardware and Software Issues HP Pavilion dv5000 Notebook PC series - HP Customer Care (United States - English))
   
4. Hold down the power button for 30 seconds. This closes the circuit and ensures all
   power from components is drained to clear the software connections between the BIOS
   and hardware and clear any corruption in the temporary memory.
   
5. (If it is a laptop, plug the battery back into the laptop and then) Plug the computer back into the wall. Do not reconnect any unnecessary peripherals; monitor, keyboard,
   and mouse should suffice and be the only peripherals reconnected.
   
6. Turn it on to reinitialize the software connections between the BIOS and hardware
   

Clear the CMOS in the BIOS (read your laptop manual for instructions to access the BIOS): Open the BIOS, go to the EXIT screen, load setup/optimized defaults, save, and exit the BIOS.

http://pcsupport.about.com/od/fixthe.../clearcmos.htm

I've followed the steps, but the same thing happens.
When I get to the boot manager it gives me the options:
-Windows 7
-Windows Setup Rollback

I press F8 for advanced options, but all of the options lead me to BSOD. I've tried all types of safe mode & even repair your computer. But when I select safe mode it shows me a loading screen (attachment) then returns to the boot manager, reboots or just to the BSOD

I wonder if Troubleshooting Windows 7 Failure to Boot is a better way to go...

You may need to make a system repair disc. Read carefully through System Repair Disc - Create.

NOTE: A system repair disc is not the same as an HP recovery disc.