(How) Can I install a new OS to fix a blue screen of death?

My mother in law has an older computer running win2k pro that her bf had been surfing on w/out an anitivirus. Of course now she gets the blue screen of death { STOP :0x0000001E (0xC0000005,)xA008ccc7 ,0x00000000 , 0x00000000) KMODE_EXCEPTION_NOT_HANDLED } is what is reads...Can I install a new OS over this to wipe out the virus? Right after the splashscreen of win2000 it pops up even in safe mode. I've tried to boot from my fresh xp installer disk but the blue screen still shows up. What can I do to just erase everything & give her a clean machine?

I inserted the installation disc,I press F8, select boot from disc drive, then it shows the win2000 splash screen , and then the blue error AGAIN...
i have run hddregen & the win memory diag from microsoft. Both those I was able to boot from the optical drive with no problem...
Selecting last known good config And safe mode(s) bring up the blue screen as well.
So how can I install a new OS if I can't get past this blue screen error msg no matter whaat I've tried? Thank you!

 

You may also like to read what Microsoft as to say about it:

http://support.microsoft.com/kb/294728