If a question is specifically directed to someone, in this case Bob, it may be considered impolite if someone else answers.
In my experience, these things happen when a system has really gone bad and restoring is not possible any more. The usual question: did you partition the HD in a program part, C:, and a data part, D:? From what I read, I guess not; you guys enjoy living on the sharp edge of the knive. Teaches you not to trust Microsoft's optimism but to do it from now on. Buy or borrow another disk, connect that one as the primary one and the one you have now as slave or secondary master and install Windows, just the most minimal version, on that new one. Start up and copy all your data from the old one to the new one; make sure that you do not forget anything but do neither copy the \Windows nor the \Program Files nor the files in the root directory. Make also a boot diskette and copy fdisk.exe and format.com onto that one. If you see a file called Autoexec.bat on the diskette, erase it.
Now disconnect the new HD and connect the old one as primary again. Start up on the floppy and run fdisk (say Yes to the first question). As your data are saved on the other disk, you don't have to fear you will lose something. Working with fdisk is a bit clumsy although more secure than doing that with Windows. Erase first the existing partition(s) and then make a primary partition of around 10GB and a secondary of the remainder. Restart on the floppy and format both disks C: and D:. Take the floppy out and restart with the installation CD; install all programs that you want in C:.
Once this is ready, connect the new disk as secondary or slave and copy all your data from that one to D: (that is DEE:, not CEE

. If you have to give that HD back, don't just delete but format it (no quick format) to make sure that your data are erased before doing so. Make sure you format the right one! Set all your data paths in your programs to D:. From now on, if Windows goes completely wrong again, you can repeat the above from formatting, but then only C:, onwards without losing your data.
Still, it would be worth its while to get a second HD, used or new, connect that as secondary and at least once a week make a straight copy from d: to that one, most probably then showing up as E:.
If you want to be really smart, copy, after all is freshly installed, the user.dat, hwinfo.dat, system.dat, win.ini and system.ini from c:\windows to a place on D:. These are essential files for Windows, and if something goes wrong later on it might be that you can restore it to the freshly installed state you have now by copying them back to c:\windows. Mind: might be.
Also rather smart: make a c:\tmp directory and assign that for temporary files. That makes it easy to regularly delete all the junk that normally goes into and stays in a few less obvious directories.