Windows 7: Hanging Windows Vista Resume Loader is Stuck

This is windows vista ultimate issue i hope it's ok to post it here seeing tis is a seven forum. Am still a newbie around here.

I resumed my Toshiba A215 and i get this screen "Windows Resume Loader" The choices are
1-Continue with system resume
2-Delete restoration data and proceed to system boot menu.
This highlight bar is always coming up on number two option. Option one dows not seem to be active.
At the bottom it has the Enter=Choose to continue. Entering is not working as the laptopn is hanging or stuck, there's no response even from a soft boot,i have to do a hard boot and it ends up in the same screen.



I have inserted Windows 7 cd, Vista, XP, Me boot, XP usb boot but it is not reading them. Yes USB and CD are set to read first and HDD is set to read last. The dvd RW drive is being read correctly in the bios. The CD's bring up the Touch any key to boot from cd, after which it just hangs there, no soft bot is possible just a hard boot.

I am ok with tinkering with hardware and software. I have never seen this screen before and i am at the end of my wits. I would like to fix this as there's just too many settings I am not ready to migrate this lappy to Windows 7 yet. Thanx!
Specs

Toshiba A215
Windows Vista Ult.
2GB ram/160GB Hdd

Here is the screen