It's stopping at the fonts directory, my suspicion is the vgaoem font is fubared. A bad font will kill any OS like this, including Tiger and Linux.
See if you can reboot with an install CD and replace all the fonts the OS needs to run.
And a warning again, something you installed put in a bad font. And the only way to overwrite system fonts is to run in admin mode. Don't do that!
If it is truly a bad font, that chkdsk WILL fix that problem, esp. if it's a system font. I strongly suggest booting from the OS CD and when given the option, run the Recovery Console. That will take you to a DOS prompt. Run the chkdsk /f and that should do ya right. And I still think you should reseat the hardware, just in case.