Please remember when reading the below I have very little details about the setup.
Question - How was the O/S originally deployed? Local or DRAC install?
Couple of suggestions.
Make sure the boot device in the bios is the HDD(s) etc and not the CD Rom itself....
Has anyone tried different disks or CD ROMS - I had a crap issue (not unlike this) with a new install of a W2K8R2 server (DC) - upgrade a client to 2008 Domain - everything looked okay - but some crazy issues showed corruption in the system files - I 'upgraded' the server to the SAME version of the O/S with a different disk to resolve the issue... The client has had zero problems since.
Use ERD to look in to the systems registry - find where the install files are being retrieved from - if the system lists it as a CD drive and the server is not able to see the drive - copy the media to the local system - then change the path to reflect this new location - make sure you are using the RIGHT version of the O/S.... R2 or not R2 - STD or ENT etc
Windows keeps copies of the SAM on the hard drive - I forget exactly where but I'll look it up. If you already know where they are - then simply rename the original ones - then copy the backups in to the place of the ones you renamed
I never saw any notes about safe mode (f8) - get in to safe mode if you can and disable most everything that is not pertinent to the system and try again.
If the system has SQL on it but no actual running applications that need to reside on the server (which normally is the case the fix is super quick. Simply reinstall the O/S and patch it up (parallel install - or overwrite who cares) - then rename the SQL directories - if the server is built right then there will be multiple drives - so simply rename each dir on each drive - reinstall SQL - the only option to be concerned with is pointing the DATA drive to the same location as it was originally - find this out by two easy methods - 1) look in the registry (before rebuilding) 2) simply locate the original master mdf and ldf files. - when you install SQL use the same paths - the rest of the install options are kind of who cares :) - except for SSRS but again not overly difficult. - Once SQL is installed and patched - simply stop the services - flip the directories - reapply the patch to be sure everything is on an even setting and restart the services - bam - SQL is back alive -joy :)
If SSRS and OLAP are installed on the original setup then a few more steps are required - but since this was not mentioned - I doubt it is an issue.
Anyway - getting a SQL box back up - 4 hours max - no consultant required - I have done this 100's of times over the last 15 years.... oh yeah - but I am a consultant and a SQL guy :-)
Eat the Elephant one bite at a time and the task becomes as small as a mouse :-)
I am sure I can come up with a thousand other ideas so let me know if you need any
Before doing anything get the databases backed up - boot with ERD - backup to USB - or used CLONEZILLA (FREE) and bang out a image
Try this also - convert the server to VMWARE with Vconvertor and VMServer 2.0 - both FREE!!! - then screw with the image which means you won't screw up the main system any further - this removes data loss as a risk :)