Windows stuck on blue HP Invent screen and won't load desktop items after doing a system recovery

Hello, this is my first time posting here, as I am in desperate mode! I have a HP Pavillion Slimline s5304y desktop pc, using Windows 7, that I purchased in Feb 2010.
After getting a virus on my computer, I ordered system recovery disks from HP and did the recovery to original factory settings process (twice!), however, during the Windows setup process, it doesn't ever get past the blue HP Invent screen that says:
--Do not turn off your PC during this one-time setup process
--Your PC restarts several times during this setup process
--Messages may pop up onto your screen. Ignore these messages until you are prompted to restart or shutdown your PC
Towards the bottom of the screen it continues to say "Please wait..." with a scrolling green bar. All I see is the windows start buttom in bottom left corner but am not able to access anything and I don't ever get my desktop screen or desktop icons. I have restarted and shut down several times and as soon as I log on to windows, I just get that same blue screen.
The 2nd time I did the recovery process, I let it continue overnight (just in case I wasn't waiting long enough) and my computer never shutdown like it was supposed to when the installation was complete. Also, I watched the whole process the first time around and my computer never restarted like it said it was supposed to; it just seemed to be stuck during the rest of the windows setup process. It eventually just went into sleep mode.
I don't have anything else plugged in except the power cord, the monitor and the keyboard/mouse. I have not installed any new hardware since I purchased the computer.
I did a diagnostics test and everything passed.
I tried to get help from HP Support, but because I'm out of the warranty period, they cannot help me and want to charge me $99!!!
I don't know what else to do at this point. Can someone please help???
Thank you.
This question was solved.
View Solution.

Hi,
I would try wiping the entire Hard Drive first and then reinstalling the Operating System as this may get around this issue.
Download and install Killdisk on the link below - ( despite the name, this application will just write zeros to the entire drive leaving it in a similar state to a new Hard Drive ).
http://software.lsoft.net/KillDiskSuiteFree-Setup.exe
Download and install ImgBurn on the link below.
http://download.cnet.com/ImgBurn/3000-2646_4-10847481.html
Go to the Kill Disk application you have installed in All Programs, open the main folder, then select Bootable Disk creators and from that select Bootable DOS CD Creator which will burn the bootable ISO to a blank CD.
During the next process do not worry about any warnings as your Recovery DVDs will reformat the HDD.
Insert this CD in to your PC that is unable to load Operating System properly. Shut the PC down, then start it again to boot from the Killdisk CD and follow the on screen instructions for Kill Disk.
A brief description of the process is here Killdisk.
Use this to wipe the whole of the Hard Drive, highlight (80h) and press f10 ( you will also have to type a confirmation and hit enter ) - ( this will make sure you include all partitions and then start the process - this may take a couple of hours! ).
When the process is complete, remove the Killdisk CD, insert your first HP Recovery Disc and try the installation again.
Regards,
DP-K
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Microsoft MVP - Windows Experience

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Hello Sir,
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I am thankful to you sir.. for your thourough help..
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