Problem renaming catroot2 folder during installation

I woke up this morning to find the family computer turned off. It seems while my cousin was online the processor went to 100% usage and pretty much froze on him. So he had turned it off. When I went to load windows it was taking a minute and finally when I was prompted at the user screen it hung for another minute or so. When windows finally loaded I discovered my sound had gone out and and everything was greyed under the hardware settings. I had also recently had a problem with the machine shutting down due to some NT AUTHORITY Error and sub spooler app trying to connect. So I tried to install AVG to see if it was a worm. AVG cameback with an error because windows RPC wasn't enabled. So I went into services.msc to turn it on. Only the extended tab was goofed. So I select the standard tab and try to open the RPC properties to find that enabling was greyed. So at this point I decide I'm just going to wipe the entire thing. So I restart and set the bios to boot from xp off the cdrom. But instead of formating the disk I opt to see if windows repair would be of any help. After it checks the disk it restarts and up comes the windows installation screen. It does its thing until I get a fatal error. Error code 426. I do some googling and it's telling it has to do with the catroot2 file not being completely removed during installation. So at the error screen during installation I should open the dos prompt with shift+F10 and change the directory to C:\windows\system32 and then type rename catroot2 to catold. Though when I do I get "a duplicate file name was found and or the file cannot befound. So I try to delete the file altogether. That didn't work so I tried to delete the contents of the file as well and again nothing. I restarted to only get the same problem. So now it's just looping back to the error code 426 everytime I boot and there doesnt seem to be a way into windows.

System specs as follow:

AMD 3200+ Barton core
Asus A87NE deluxe
1GB DRR
Antec 350w atx
ATI 9800 pro

 

At the Recovery Console enter the following commands followed by enter:

CD \windows\system32\catold

del *.*

CD \windows\system32

rd \windows\system32\catold

ren C:\windows\system32\catroot2 C:\windows\system32\catold

exit

System will reboot

Now try a Repair Install

 

Thank you for the suggestion but nothing seems to be working. I received the following errors for each command. I understand I need to specify c:\windows.

CD \windows\system32\catold

the system cannot find the path specified.

del *.*

'del *.* is not a recognized as an internal or external command, operable program or batch file.

rd \windows\system32\catold

the directory is not emptey

ren C:\windows\system32\catroot2 C:\windows\system32\catold

the syntax of the command is incorrect

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I am trying to put the following into the cmd console from installation screen where I am getting the error? Is the recovery console something else?

 

Try these

erase c:\windows\system32\catold\*.*

rd \windows\system32\catold

exit