7E error! Only starts in safemode =(

I am currently working with an acer aspire T180 with windows xp 64.
processor: 3500+ amd 64
RAM:2gb
hd: 80gb sata with xp service pack 3
video card:Geforce 9500GT model:V157
I had to replace the power supply with a GX 650W


I can access safe mode just fine, which is how I updated my drivers.
I cannot get my computer to run in normal mode and when I try to I receive the error
Technical information:
***STOP: 0x0000007E (0xC0000005, 0xB81A8750, 0xB84C342C, 0xB84C3128)

I have tried: chkdsk /r
xp recovery
updated drivers
removed the added video card, still same problem
ran a virus scan and got rid of a trojan, which still didn't fix the problem
I can't restore to a previous restore point. I tried that and had to re install certain drivers so I could use safe mode and networking again....
The hard drive currently in the computer isn't the original. The hard drive that came with the computer is fried... or so the owner says, and they have no idea where it is so I can't check. The power supply & video card are also not the original =/

The only thing I haven't tried is updating my BIOS. I'm actually nervous about this step because I haven't messed around with the BIOS before.

After going to the acer site I found that windows xp 64 has another bios that could be used.
my current version is: Phoenix Technologies, LTD R01-B3, 2/7/2007 which is very old. version 2.3
The newest one is: Phoenix Technologies, LTD R01-C0 from 2009.

I couldn't flash the exe right from the computer after downloading it but I think I can some how put that on a USB and try it.

I just want some input and guidance. Am I on the right track? I don't want to mess this computer up so bad I can't use it in safe mode.

I would also like to add that I'm receiving The device has a bad block of memory for my hard drive in the event viewer. Would I need to replace my hard drive or is there away I might be able to fix this?



HELP!

 

Google the hard drive manufacturer's site and download and install the manufacturer's recommended test. Google search:

{Hard drive manufacturer} hard drive test software

Updating BIOS is looks like a good idea if you got the update from the manufacturer. Just me, but I would do it.

You've gone through alot of the steps. I'm sure you have all the MS critical updates. What about new programs? Added anything new or changed any major settings in a program recently?

The bad sector report in the event viewer is the place to concentrate. HD manufacturer's test might help you confirm the information...

Might help if you could post a zip of your minidump files...