Having problem restarting and restoring..

My moms laptop boots up and then goes into startup repair. It has a error and says "this computer cannot be fixed automatically"
And says in report details
Autofailover.
And other stuff..
The computer has a lot of problems lately and I just want to install windows and or in place upgrade..
I used vista repair disk and tryed that to repair and it says same error.
I have tried safe mode and everything an it always boots into startup repair.. I also tried the tut on forums how to fix infinite startup repair loop. Didn't work
If I got a vista install disk could I do a inplace upgrade and would it fix problem?
I can't boot into windows AT ALL.
I would really like to avoid clean install..
Does windows need to be booted to do inplace upgrade?
Or would I have to do a clean install?
I don't have access to my product key.. I was pre installed and the sticker on computer is from a previous install, could I use that product key since its on same laptop?
Please help this is URGENT!! It's my moms work and she needs it fixed ASAP or we won't be in a house soon
Thanks

Any help? Thanks
EDIT:
I Added another question

First, your laptop is your laptop and her computer is her computer.
You can not user your Product Key on her computer.

Download PuppyLinux
Puppy Linux Community Home - Getting Started
Use PuppyLinux to copy all files dear to her heart to a usb stick or usb drive.

Purchase a Win 7 Upgrade DVD.
Make a clean install using the upgrade DVD.
Clean Install with a Upgrade Windows 7 Version

karlsnooks said:

First, your laptop is your laptop and her computer is her computer.
You can not user your Product Key on her computer.

Download PuppyLinux
Puppy Linux Community Home - Getting Started
Use PuppyLinux to copy all files dear to her heart to a usb stick or usb drive.

Purchase a Win 7 Upgrade DVD.
Make a clean install using the upgrade DVD.
Clean Install with a Upgrade Windows 7 Version

I meant the sticker on her laptop
I got it all sorted. Partitioned hard drive via diskpart did clean install and recovered all her files and had to resize partition I also had to use a keyfinder program to find her key on her old OS install, That is why I didn't format hard drive. The sticker on her laptop was unreadable.
All seems well now! It seems to boot faster. I got all the drivers too.
Installed microsoft security essentials and about to install office.
Any other things I need to install to keep her computer safe?

Did you install Microsoft Security Essentials, MSE? Link in my signature.

MSE is all that is needed plus good common sense such as avoiding peer-to-peer programs such as µTorrent.

Always download software directly from the producer of the software.

Do not install any cure-all, speed-up all, type programs.

karlsnooks said:

Did you install Microsoft Security Essentials, MSE? Link in my signature.

MSE is all that is needed plus good common sense such as avoiding peer-to-peer programs such as µTorrent.

Always download software directly from the producer of the software.

Do not install any cure-all, speed-up all, type programs.

Yes sir I did. Now I have to let it update forever on my internet connection lol

edwar said:

Depending on the age of the notebook it may be time for a new hard drive as it has been my experience over the years that operating systems don't just start failing without some underlying hardware problems. Mostly hard drive failures or RAM failures.

That is if it isn't infected with some type of malware, Trojan or virus.

I think the problem is that it doesn't charge because the battery is fried and if you unplug it it will die.
My mom thinks she unplugged it by accident while it was updating. I'll be ordering a new battery and charger and hopefully this will resolve all my problems :)

gregrocker said:

In the future work through these steps for Troubleshooting Windows 7 Failure to Boot.

To get a perfect Clean Reinstall - Factory OEM Windows 7.

You said the sticker on laptop was unreadable so you audited the Vista Product with a keyfinder. But how was this done if the OS was not bootable? Which keyfinder program can do that as I've not heard of it here.

IN addition the key on a preinstalled Win7 Factory OEM is a batch key used to mass activate in the factory and cannot be used to Clean Reinstall unless it is backed up first in it's SLP activation file. So how did you get that key to activate?

I have installed windows 3 times now.. The first time a store installed it and wasn't oem so the key was re usable.. The second time I partitioned hard drive and installed OEM windows, Therefore I did not delete the old RETAIL partition.
This time I used a windows vista install disc and made a fresh partition (so i didnt have to lose all my files) then installed on the fresh partition. I have 3 partitions in total now. 1st Install from store (non OEM) 2nd OEM windows 3rd Fresh install
I suppose that the sticker on the laptop was made unreadable for a reason from the store I bought it (I bought it used so I wonder if they installed fresh windows). Then I used magic jelly bean key finder and clicked load hive and loaded the 1st partition that had a non OEM install and it gave me the key for it.
I then used the key it gave me from the 1st partition that had a non bootable retail windows installed on it.
Works like a charm if you can't retrieve your key and if you can't backup select files because it's unbootable.
You may have mis understood me..
:) happy I got it working and have EVERY single one if my files because I still have access to my old windows partition documents and downloads