I already did...with no results. The disc was ignored and the computer still loaded the blue screen error message.
Can you get to a bios screen? If you can, check to see if your hard drive is listed there. Also change the boot order in the bios so you boot off of the CD/DVD drive first. This may allow you to boot up off the disc.
The error is coming during the earliest part of the repair/install process. The faulting module (Wimfsf.sys) is not installed in C:\Windows as far as I know, unless you are running the Windows Automated Installation Kit [WAIK], which is used only by experts doing automated Windows deployment.
Check for a bad memory DIMM. Try booting and running the built-in memory diagnostic on the install disc. See http://www.windowsreinstall.com/winre/repairmemorydiags/
If you have bad memory and you can’t fix it (some laptops have physically soldered DIMMs), then recovery of your date may require the physical removal of your hard disk from the laptop. You don’t want copy files through bad memory as it might corrupt your files during the transfer process.
As long as the HDD isn’t physically damaged it should very easy to recover your files. Take your laptop to someone you trust who knows how to remove the HDD from the laptop to recover your data for you. Try Geek Squad.. other Freepers can probably recommend other places. Or find a tech friend who can insert the HDD into an external USB enclosure (typical cost $29-$39) that you can plug into another PC.