Windows XP infinite loop / boot sector probelms

So, I'm in the middle of playing guitar hero 3 on my computer, then I get a blue screen. I reboot, and I get a bluescreen, rinse repeat. Long behold, I probably have a boot sector virus. So, I grab my xp disc that I normally use, and go through and begin the setup / repair process. The repair process beings, and I get a cyclic Redundancy Check error, then my computer reboots.
I try several more times to get the disk to work with the same result, so I pull it out of the disc drive, and there's 3 large chunks of the film on the top of the disc missing. So, I make myself another boot disc, and try it. Then the install cannot find ASMS. I try several times to point the install to the ASMS portion of the boot disc, but it won't read the disc.
I try looking about on the internet for awhile to figure out what I can do, but most of the posts I read don't help. Furthermore, XP has decided to go into a 'setup is restarting' loop, as in all XP wants to do now, is try to repair and reinstall windows, it won't boot to the HDD no matter what I do. I have, however figured out how to get DOS, Regedit, and the Windows Hardware, -
being able to browse my hard drive through regedit, loading hives.
Here's the kicker, I could have simply used my xp install disc to fix my boot sectors by pressing f6 to load 3rd party drivers from the disc.
Now I'm stuck, indefinately in this loop, and I cannot figure out how the **** to get out of it. I am simply, frustrated.