Blue screen loading windows...baseeskc32

The computer is my father-in-laws and is a Vostro 1500. It started off with really bad spyware. I was slowing getting rid of it all. I ran a virus scan via AVG and it detected a number of viruses and trojan horses. I forget the name of most of them, but I do believe one was called Vundo T. Anyhow I was getting reading to remove/quarentine them. Avg asked to restart, so I did that and now it no longer loads windows.
A blue screen comes up saying: STOP: c0000135 {unable to locate component} This application has failed to start because baseeskc32 was not found. Re-installing the application may fix the problem.
Now I can't even get it into safe mode because another blue screen appears. It is saying a problem has been detected and windows is shutting down to prevent damage to your computer.
IRQL_NOT_LESS_OR_EQUAL
I have no idea where to start. I tried loading the dell windows disc it loads all the drivers. It starts to load the windows installation and once again gives me the blue screen error.

 

I had a similar issue when installing windows on my vostro. Mine came with Vista Basic, but I have an MSDN subscription through school and got Vista Business for free. I would go to install and halfway through the install i woulld get a blue screen and it would restart. I finally fixed it by disabling something in the BIOS. I think it was enabling/disabling the AHCI that finally got it working. I'm sure you could load external drivers for it and it and that would fix it w/o messing with the bios. I don't rmemeber if i was getting the same error on the bsod as you were though.