I will try and explain better this time sorry about the first post, it was too late at night.

The system boots and gets to the windows splash screening however it takes it along time to get there. And when it does, it takes a long time on the splash screen and eventually restarts.

I tried running chkdsk in windows XP recovery and that took forever, so i left it running at my friends place and in the morning he told me it didnt finish and that it found all of errors.

I tried using a livecd to access and here is what happened:

I can get to "Documents and setttings" fine
I can access different user's folders fine (Desktop, my documents etc)
Now when i try and access the user he wants named "~". it goes in to that directory fine. I can list the content of the "~" user directory. However, i cant access anything from there. I cant access My documents, Favorites or anything else. I did come to the conclusion that that part of the harddrive is corrupt. But im wondering if you guys know of anyway to recover the data (like booting into another system but i already did that with knoppix)or if im wrong, what is the problem?

Again thanks for all the replys

Real apprecaited