Missing hal.dll and BSOD

Hello,

Last night i installed Win 7 RC on the Aspire.Since you can't upgrade from XP to Win 7, i did the keep settings function and did the custom install. After it was installed i saw it doesn't keep the installed programs which i thought the keep settings function would do. So i decided to remove Win 7. I tried the recovery option and it didn't work. I kept booting into Win 7. Using Easy BCD i deleted the bootloader file thinking that after that i could do the restore function. No such luck. When i boot i now get the missing hal.dll message. Next thing i tried i made an XP iso file and installed it on an U3 USB drive and booted from it . It works to a point. The setup start and then i get a BSOD just as i get the message that setup is starting Windows. The message tells me to check for virus, remove any newly installed hard drive or hard drive controllers.To make sure that it is properly configured and terminated and to run CHKDSK /F to check for hard drive corruption. The stop message is:
Stop: 0x0000007B (0xF7AFA63C,0xC0000034,0x00000000,0x00000000)

So now it seems that my Aspire One 8'9" netbook is now an expensive paperweight. Any suggestions out there on how to fix this? I won't mind if it's a long process as long as it's restored. Thanks in advance for any help.