Windows 7: Inspiron 1545- BS w/ dove/ olive branch & Startup Repair

DELL Inspiron 1545 running Windows 7
Purchased Aug 2009
I know there is spyware virus, when my wife logged on to pay bills some very suspicious pop-ups appeared asking for ss #, etc.
The real problems began when I tried to load Avast. Now when I turn it on it goes to a blue screen with the white bird and green olive branch. There is nothing to click on. I tried pressing F8 while turning on and I get to the black screen where I can choose safe mode, safe mode with networking, etc..It doesn't matter what I choose, it always ends up at the same blue screen with the bird.
I can't even see the system info to see if it's 32 or 64 bit. I know I need this to see which Windows Restore disk to create. I'm thinking it's 64 but not 100% sure.
When it's been sitting awhile, a dialog box comes open. I took a pic of it:

Hello there!

See if you can do a System Restore from System Recovery System Restore (Follow Option 2)

At the same time alongwith what Captain suggested, you may also think for this :

Does it boot in Safe Mode ?

If so, follow the instructions of Troubleshooting Windows 7 Failure to Boot .

1. I can't get to the startup menu.
2. Its a laptop so I don't think it has a pause/ break key.

You are to press F8 to get into advanced boot options, to get into safe mode.

"I tried pressing F8 while turning on and I get to the black screen where I can choose safe mode, safe mode with networking, etc..It doesn't matter what I choose, it always ends up at the same blue screen with the bird."

is it the same computer listed in your system specs ? home premium 64 bit ?

No, Its a dell laptop windows 7 home premium, now I think it's a 32 bit since i've been reading a bunch of similar threads on this forum.
I need to create a system repair disk for a 32 bit

Press F8 at power on (POST) and you should get the options for the Dell recovery partition (PC Restore) and that will allow you to restore the PC to the original factory condition (assuming the recovery partition is not corrupted or has been deleted).

If you can't restore with the Dell recovery partition, you will have to reinstall with a Win 7 disc (and drivers). If this is the case, you can download Windows 7 and create an iso DVD, the same version that you have (probably 64), and use the Dell supplied Win 7 Product Key (tag is usually in the battery compartment) to install. You can access needed driver downloads (and you need at least the Dell supplied sound driver, if not more) from www.support.dell.com using your service tag number.

Windows 7 download

If you want Dell discs, you can request a set of discs (Windows 7 and the Dell drivers and utilities disc) from Dell HERE You will need to be the registered with Dell owner and have the service tag number.

Better you download windows 7 home premium iso from Official Windows 7 SP1 ISO from Digital River « My Digital Life .

If the system repair fails, you might have to go for a clean install, and in that case it will be necessary.