Toshiba OS failure to re install stuck on 'Setup is Starting'

My laptop recently got knocked over, after impact the screen went to a zigzag pattern in weird colors with a high screeching noise. The only way to turn it off was to take the battery out. After trying to start it up it worked fine and loaded correctly, soon after i loaded my game and ran around a bit windows froze and I had to restart the laptop. It loaded fine again but before i could open any programs windows froze again.. So I restarted it and this time it wont go past the 'Loading Windows' icon. I then figured maybe the hard-drive had detached from the impact. I checked the hard-drive and took it out and put it back in, checked the memory which all seemed fine. So I shut down the laptop again, just to get stuck at the loading screen again. I then turned it on and opened system repair. I went through the System Repair and Restore Windows to an Earlier Time which afterwards said 'I cannot manually fix your computer please send this report.' At this point I've given up, so I've resorted to the Windows 7 Home Premium installation disc. Now when i start the computer off the disc I enter the Language(English), then hit install. Now it's at a blue screen with 'Setup is Starting...' for about 2 hours..

Test the HD with the maker's HD Diagnostic extended CD scan, followed by a full Disk Check from Win7 disk Command Line in System Recovery Options.

Then test your RAM - Test with Memtest86+.

If these are OK then Troubleshoot Windows 7 Installation Failures - Windows 7 Help Forums.