HP Compaq 702 EA Has Completely Died On Me!

Hi, I hope someone can help me.
I have the netbook, listed above, running on XP.
Last night, the laptop blue-screened, did a memory dump, then crashed.
Since then, I've repeatedly tried to re-start it, without success.
It gives me the options, such as start windows normally, safe mode, safe mode with networking, safe mode with command line, etc.
Whichever option, I choose, it runs the XP startup, then stops and will go no further.
I have tried to re-install Windows, using an external reader and recovery disc, but the computer can't ;see; the reader, nor can I change the boot order in the bios to allow the reader to be seen.
Has anyone any suggestions as to how to sort this out, and get me up and running again? Thanks for your time.