Windows 7 hangs at setup is starting services

  cap46 21:25 25 Jan 11
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Hi a friend of mine has an ACER extensa 5235 laptop, it did not come with any recovery discs, and has a built in recovery management tool. By pessing shift + F10 at bios startup this brings up the acer erecovery tool, there are 2 options one to set back to full factory settings and one that says that the operating system will be set back to factory settings. I have tried both methods several times and it says recovery succesful, it then reboots and after loading as far as 'setup is starting services' it hangs and nothing more happens. The HDD light is showing that the HDD is still active. I have even left it on all night, but it sticks at that point. Any suggestions ? Hardware is all ok on laptop

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