Trouble booting, please help

I bought an AAO for my niece for xmas and already have problems. When you turn it on, it goes through the motions of booting, you see the windows loading splash page and loading bar then blacks out as if to go into windows. But, It flashes a blue screen REALLY fast - cant make out what it says at the top, about a line and a half of message - then starts to reboot again.

I've tried loading in safe mode, last know good config, etc, and nothing works. It's got no cdrom drive so I cant boot from cd to reinstall or recover, etc.

What can I try to do to fix this? Any suggestions would be greatly appreciated.