Blue Screen-User.dll not found

Hello,
Kids using computer, was told they stopped using IE and walked away, ststed inappropriate picture popped up. Said they x'd it out. Came up, Blue screen with message

"Stop: c0000135{unable to locate component}
This application has failed to start because user.dll was not found. Re-installing the application may fix the problem"

Tried to re-start computer and received the same message.
Tried to restart using recovery console received blue screen with long message then :
Stop: 0x0000007B(oxF7CAF524,0xcooooo34,0x00000000,0x00000000)

Located similar post on MG and it said to try to boot from CD, used CD from Dell (Operating system already installed, re-installation CD.
loaded files to begin set-up the....
"Set-up did not find any hard drives installed in your computer, make sure disk drives are powered on , yada yada..
I had previosly tried to run harddrive diagnostics on re-bott andit said they passed.

Help!!!
DELL XPS 400 Windows XP Home
Mike

 

Before the system files start loading, there should be an option to "Press F6 to install hardware or RAID drivers". Press this and look through the OS disk for some hard drive drivers.