Windows 7: PC Won't boot, POST beep is OK!

I went out today and came back and my PC was stuck at the "Last known good configuration screen". I tried to boot into windows using that setting and nothing happened, my PC Just restarted and the cycle began back to that screen again.



I restarted, POST gave me no errors but i was still unable to get into windows, I put my disk in and attempted to repair my installation and once again it wouldn't load, I got to loading necessary files etc (With the bar at the bottom) then the PC restart after that..

I'm thinking it could be a hard drive issue, I've got a spare old hdd i can try, but before i pull apart my PC i thought id ask here.

Follow it:
Troubleshooting Windows 7 Failure to Start

Or, run Startup Repair for three separate times, with restarts after every single run.
Startup Repair: Run three separate times.

I can't even boot into safe mode, every time I try boot from the windows CD my pc restarts just after the "Windows is loading files" screen seen below.
I'm running my PC from a linux live CD in an attempt to recover my music and assignment work, but i cant even see my C: drive.

Sounds like the HD... Install the second drive, change the boot order, and try again, installing to the 2nd drive... If installation is successful, try to access your borked drive...

My other drive has over 50GB of games, Can i install to that drive without over writing over my games?

You would have to create a second partition on it... and that requires a working computer...