Acer Aspire 5310 will not boot or enter recovery mode.

The laptop kept freezing so my cousin brought it to me to restore to factory settings. When I started the laptop I pressed alt+f10 to enter acers rescovery consol. Th I got a long white line saying windows is loading files then I got the back screen with a scrolling bar with microsoft corporation below it. I am stuck on this window. I can not open in safe mode it goes through all the files and then hangs there.

I have tried to boot from a recovery cd but this isn't working I have made sure the bios is enable for cd boot and also tried pressing f12 and choosing boot from cd. Any ideas on what to try next because I am lost

 

Should have said the OS is vista home premium.

 

Ok now it will boot from recovery cd but its stalling at 77% when trying to restore to factory settings. It sounds like the disk drive is still trying to read the disk but nothing is happening!