Windows crashed on Startup(unique story)

I know it isn't much to go on. But I was playing the Sims 3 on my Acer Laptop(Acer Aspire 5336-2524) and I got a blue screen. Thought nothing of it because of reports of this happening. It didn't happen again for a couple months and it happened again and crashed my laptop. I would boot it up and it would just reset and continue on.

So I did what anyone with computer knowledge would do. Started it up and entered into the windows re-installation settings. I decided I was going to wipe the drive clean and re-install windows. Well, as it was installing all of the standard software, I noticed it would get stuck on "Windows Defragmentation". It would just sit there for about 5 minutes saying "installing" and I would get a Blue Screen and the laptop would shut off.

I was able to by pass this for about 30 minutes by bringing up my task manager and shutting down the installation process until I was kicked off by the blue screen.

So, not knowing what else to do. I decided I was going to re-install windows a second time.

Now, instead of getting to the software installation, It bootsup and has the Windows Logo and under it says "starting windows" and then "Setup is starting services" and I get the error "Windows could not complete the installation. To install Windows on this computer, restart the installation."

I have tried Safe Mode, Tried Windows Memory Diagnostics Tool. Neither have worked.

No idea what to do. So I am pretty sure I am screwed on this one.

Should I just move on? I mean, the laptop was great at first. but then I would get USB drive errors(Which lead to the blue screens come to think of it).

It is not a BSOD issue. It was just what caused the crash.
Maybe I wasn't clear enough.

I can't enter Safe Mode or any form of Safe Mode because my computer is stuck installing Windows. I will try to install it from a USB stick but I don't think that will work.
Here's exactly what happens when I boot up my laptop.

Starting Windows appears with Logo.

Setup is starting services appears.

Shortly after that, an error message: "Windows could not complete the installation. To install Windows on this computer, restart the installation."

I click ok, and it says: "Setup will continue after restarting your computer"

And it just repeats.

I can't use the Diagnostic tool because I can't even get to a log in screen. I can't get into Safe Mode because Windows isn't even installed apparently.
I can't restart the installation by pressing F8 at startup(which is what I did to begin with).
Nothing in the F2 option menus can help.
The only possible thing that could work now is if I download the windows 7 iso from the Microsoft website, put it on a USB but right now my USB is apparently not working(Stupid HP can't make a good product. I get a "Windows could not format". But even after I fixed that problem and loaded all of the iso files onto the USB, the minute I plugged it into the laptop, it decides to be corrupted again.

So to sum it up.
Can't get into Safe Mode(i stated that in the first post). It is NOT a BSOD issue(I know it might have seemed that way from the first post but I was just giving as much detail as possible.).
Neither of those things will help my situation.

Thanks for the input. I already knew I had to clean install windows 7. And already knew how. I accidentally installed windows 7 32-bit when my laptop was originally 62-bit. So i have to re-install that. And I don't know if I re-install it to 64-bit that it will give me the drivers.
But the thing I am having trouble with is what specific drivers I need to install for my Acer Aspire 5336-2524 laptop. I am on the Acer website, and the only drivers they have are: chipset, sata ahci, audio, bluetooth for sp1, bluetooh 3.0(atheros), bluetooh(atheros), bluetooth 3.0(broadcom), bluetooh(broadcom), card reader, lan driver, touchpad driver(elantech), touchpad driver(synaptics), vga driver, wireless lan driver(atheros), wireless lan(broadcom).

Is this all I will need? And for the ones that have more than one(ie: bluetooth and wireless lan), which one do I install? Or both?