Look your problem is quite strange and I'm not very expert But i'll try to help you according to what you described in your problem in a logical way
first you said that the computer gives you a message telling you a corrupted system 32 file this may happen for several reasons
first: your hard drive have a real corrupted file system and you can solve it by fdisk.exe this you can find it from any bootable floppy I recommend get a boot disk from older version especially windows me coz it supports fat32
Then make the computer to boot from A: not CD drive
After that install the windows Xp from the ms-dos enviroment if it didn't work install an older windows (even if you copied it from somebody) then upgrade it by the XP to prevent you from booting from the Xp disk
Second: there are a corruption in the processor or BIOS software that makes it cannot understand the file system in the hardrives or any data from any removable drive (like CD drives)
The processor: a hardware problem you must change it (don't worry this kind of problems is so rare to happen)
The BIOS(the probable): Because of a virus may cause such a thing you must re flash it so try to download it from the internet or get it from any computer company
Please try every step and send me you have any questions
bye.. good luck!