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Where in Help and Support does it describe Virtual Hard Disk images or how to mount them and access the indivdual files?

To reinstall the image you boot the machine with the repair disk.
Then choose the option to restore a saved image. Windows will
search for any saved images to restore.
The image is an exact copy,...

I haven't got a definite answer but it sounds like it maybe something to do with the Vista system fonts. I haven't got a Vista box running at the moment but I think the font should be Segoe UI. If...

In your first post you said your machine is:

Dell Inspiron E1505
Windows XP Pro, sp 3

When I Google the specs of that machine I see that Dell supplied it with Windows XP Media Center Edition....

According to the HP site the HP Touchsmart 300 is preloaded with Windows Home Premium 64 bit.

I don't think you can tell easily without booting into Windows.

If you cannot source a 64 bit Win7...

Did you boot with the correct 'bit' version of the Windows 7 repair disk ?
A 32 bit repair disk won't see a 64 bit Windows installation.

You have said you have performed tests on the RAM and the disk.

Post #17, "There were two Memory Test, I ran the Memory Test86 v3.5. No errors.
I'll see what I can do with disk diagnostics."

...

There is no point in using the new account if it is unable to create shortcuts
or switch users. If Windows can't create an account properly then there is
something wrong with Windows.
If there is...

Have you tried creating another account and seeing if that one freezes ?
It might be a corrupt user profile.

To view information about blue screen errors try Blue Screen View,
(it's a free app):
http://www.nirsoft.net/utils/blue_screen_view.html

I've had the same problem, and I've registered on this site to tell you how I fixed mine.
I had to wait about 90 seconds for the icon to appear and just before it did a message about the firewall...