Please someone help me fix my kids comp. windows\system32\config\system error

Please anyone, any advise will be appreciated. I don't know much about fixing these types problems and since I have 6 kids I don't have the money to have it fixed or buy a new one. After all this one is only about a year and half old and was top of the line at the time. It wont boot, system restore or anything. I installed the discs that I think came with the computer but no help. It's a dell 160gb

 

I'll try to help, as I fix people's pcs for half my living lol!
I need you to go into complete detail- describe specifically what
happens from the time you press the power button.