blank blue screen

I am trying to fix a client's computer. They continuously get these rogue type viruses (anti-virus suite, security tool type), it has never happened to this user before. this time the user got error message supposedly through AVG that the outlook.exe was corrupt, then they tried using access same thing happen, so they tried to run a quick scan via AVG (business version not free). While that was running they called me, I explained they should run rkill, and maleware bytes both could not as AVG said they were corrupt. So I had them re-boot, after the AVG scan was complete, run rkill immediately, malwarebytes - which they did no viruses found on 210K files. They also started a full AVG scan it found 327 viruses over 460k files.

At that point I had the user shutdown. I picked up the PC figuring I would fix it over the weekend.

one of my concerns is the file count difference. Note they use server 2000, so most of their files are save to the server so 460K seemed a bit high.
second was the difference in virus counts

I figured a virus is playing with AVG or a bad update from AVG.

I started it up - no matter (normal or safe) it appears to start normally, after I get the WINDOWS LOGO - I just get a plain blue screen and nothing happens it just stays there.

Check AVG website http://www.avg.com/us-en/hot-topics.num-2953


So I downloaded the AVG RESCUE CD, created a bootable CD - started the from CD, did what AVG said to do, enable networking, downloaded the latest rescue updates, restored the files from the vault

Upon reboot - same thing plain blue screen -- no stop codes.

Any ideas as to what happened in the first place?
Any ideas as to what to do next?

thanks
Joy

Edited by hamluis, 02 August 2010 - 08:15 AM.
Moved from XP to Am I Infected forum ~ Hamluis.