Strange faint gray/blue screen
It sounds like there is a critical error in loading the operating system, most likely caused by a corrupted file or key in the registry. Your options are: A) Spend countless hours[days] troubleshooting and experimenting trying to repair, or B) back up your drive, wipe, and re-install. I would obviously go with option B, as it will save hours, if not days of your life. Here is the easiest route to solve. (Note: you sound like you know your way around computers, so I am assuming you've already tried booting into safe mode.)
Here are the steps to getting your files off and re-installing a fresh version of Windows 7 RC (it's free to test, remarkably stable, and will continue to work until June 2010)
1. Power off computer, unplug, remove battery.
2. Remove hard drive (here is a how-to: http://support.dell.com/support/edocs/systems/ins6400/en/sm/hddrive.htm#wp1128924)
3. On a separate computer (obviously) download and burn Windows 7 to a DVD (get it here: http://www.microsoft.com/windows/windows-7/download.aspx )
4. Hook the hard drive you took from the e1505 to your secondary computer. It should be a SATA connection, which most newer computers i've seen contain those connections. So you should be able to plug it directly into a desktop PC. If not, dig out an external hard drive, pop out the screws, and hook up your SATA e1505 hard drive to the SATA connection in the ext hard drive, power the ext hard drive and plug the USB into your secondary computer. Either way you connect it, the computer will recognize it as a storage drive and you can simply copy the whole thing to your computer for sorting out later.
4. Once backed up, and your Win7 DVD is burned, pop that harddrive back into your e1505.
5. Turn on the laptop and put in the Win7 disk and start the install process.
6. Enjoy your fresh OS (and yes, it is compatible with windows xp programs -- just check the box for Compatibility under the right click-->properties)
7. transfer your back-up files to your e1505
8. crack open a beer and laugh at the hypothetical you that would still be beating his head in trying to figure out wtf file is missplaced or corrupted.
cheers!
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