BSOD Stop Error -- Will only boot to Ubuntu Linux USB Drive

I am working on a Dell Inspirion 6000 laptop for a friend and have run into a brick wall.  Machine was running Windows XP Pro SP2.  However, it is now completely incapable of booting into windows even in limited safe modes (tried them all).  Laptop boots directly into the BSOD and displays the following:
STOP:  0x0000007E (0xF85F664A, 0xF8A43900, 0xf8A435FC)
MountMgr.sys - Address F85F664A base at F85F4000, DateStamp 48025371

System restore does not work, last known good configuration does not work.  Booting into the Dell OS reload does not work either.  However, when I have run the extended Dell diagnostics, all fo the hardware passes the tests.  In addition, when booted into the Ubuntu USB, all areas of the HDD can be accessed and all of the data has been backed up.  I have queried the owner and they claim that there has not been any hardware upgrades in months.

At first I thought the Rustock trojan/virus, but the associated files are not in the system32 directory.  BTW, won't boot to CD either to be able to perform a standard Windows reload.  I will have to create a bootable Windows USB drive and attempt a Windows reload unless someone has a better solution.

Thanks in advance!
TechnologyDoctorAsked:
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Britt ThompsonSr. Systems EngineerCommented:
Sounds like a hardware problem...the Dell diagnostic isn't the best tool to determine whether or not there are issues with the machine. Linux MAY not hit the particular bad address which would explain why it boots with not problem. I'd start with swapping RAM and see if it will boot. Then, I'd pull the drive out and see if it'll boot to the OS install disc.
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racingjehuCommented:
Do you have a way to view what is on the hard drive outside the pc? such as USB 2.0 to IDE or SATA Drive Adapter?
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TechnologyDoctorAuthor Commented:
Unfortunately, my SATA/IDE to USB adapter will nto fit this particular HDD.  Swapped RAM and now it won't even boot to error screen so I am assuming you are correct and it is a RAM problem.  Getting spare from another laptop and will let you know.
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TechnologyDoctorAuthor Commented:
Ok, proper adapter and have been able to connct via the ide/sata connector and the drive scans with no errors.  I have attempted to swap the RAM around, but this has no effect.  Laptop still boots to BSOD.  I am beginning to believe that it is either a RAM or a mother board issue.  When I remove the HDD and attempt to boot via the CD, the CD will not even spin up.
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TechnologyDoctorAuthor Commented:
All testing confirms that it is a hardware problem.
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