Bad system crash - Blue screen

Hope someone can help/assis me.
Running windows XP & it seems I have been victim of some bad/nasty virus/trojan. My pc goes only as far as the blue screen but after that it will just freeze, I won't even see any of my desktop icons come on, have tried on/off several times but same scenario.
However I do have a good ghost-image on dvd which I use in case of emergencies such as this or whenever I have system crash & ghost image is my last resort, having said this I always need to boot pc with 2 flopy "disk 1 & disk 2" followed by actual ghost disk/dvd.
Now here comes the good part, I get all kinds of error message when I insert "flopy disk 1" something like, systm.config error on line 20, systm.config error on line 21, & so on.... I have never seen such messages when I insert flopy boot disk, is this caused by bad/damaged flopy (perhaps somehow flopy has gone bad eventhough I've used it few times) or is it something else with the computer itself that is giving me this error when It wants to read this flopy.
Thanl you,