Unable to click on desktop items

[Confusion]

My neighbor's laptop recently got screwed up.

Here's the specs:
Dell Latitude CPI XT
Pentium 2 366mhz
192mb ram
windows xp
6gb hd

Basically what happened was he is unable to click on anything in regular start up mode. (start menu, folders, etc.) Only thing he can do is ctrl alt delete, but when u go to do anything with that it looks like it is loading but never does.

When we opened it in safe mode, it worked but wouldnt let him format his c drive. said something about a window being open and displaying stuff about the HD.

It might be a virus or something. He downloaded some mcafee pro virus scan thing and did a virus scan before it worked, then deleted the stuff that was infected, and the next day it wouldnt work. Help?

edit: SAfe mode has started but we dont know wut to do.

[Kastro]

i just had the same problem you're referring to yesterday when reformatting my desktop. my solution was as follows:

on restart, enter setup. set the machine to read from your cd-rom first and put in the setup disk (i had win2k) and it should start the reformat next time you reboot.

[Confusion]

ok we did that and we got the message:

File usbccgp.sys caused an unexpected error (18 at line 5897 in D:\xpsp1\base\boot\setup\setup.c.

Press any key to continue.


Then at the bottom it says setup failed, press any key to restart.

Whenever we start it up normally, it wont let us click on anything, and when we move the cursor over task bar, the arrow turns to an hour glass, then when we move it off, it goes back to the arrow.

[Confusion]

ok we did the cleaning boot process, now what