Laptop stuck at startup?

When a laptop is starts, you usually would usually see something like the following:
1) "Windows is loading files..."
2) "Starting Windows"
3) "Screen where you log into your computer"
4) "Computer Desktop"

However, what I saw when I started the computer was the following:
1) "Windows is loading files..."
2) "Starting Windows"
3) "Light grey screen where I can see and move only the mouse cursor"
and an intermittent low volume cricket noise (for lack of better words)
4) no change from 3)

Someone gave me a free refurbished version of ASUS U50F-RBBAG05 because it gave the above problem.
So, despite being a noob (but not a noob noob) at fixing computers, I tried to make a clean install of Windows 7.
However, the laptop decided that it didn't want to install the software--(clicked on install button and waited 3 hours).
The laptop just stayed at 0% progress.

So, I was like, "Okay, so let's TRY to restore this thing back to factory settings via Recovery Partition."
Although I waited on the Light grey screen for about 30-60 minutes, I finally got to the screen that I needed.
Alas, although the laptop did "start" the recovery process, it ended up the same--0% progress and did not budge

I know that the Windows 7 installation disc was not the problem--I had 3 other installation discs (all legit).
Since the laptop decided to not move from 0%, I figured that getting the ASUS restore disc would not help at this point--sure, the laptop would recognize it, but it wouldn't run off of it.
I tried running the laptop via command prompt, but all I got was a blank screen. I tried everything that I could think of from my little bag of tricks, but to no avail.

The following are the specs for the U50F-RBBAG05:
Processor: (2.16GHz) Intel Core i3 330M
Memory(RAM): 4GB DDR3
Memory(RAM) Type: 204-Pin DDR3 SO-DIMM
Graphics Coprocessor: Intel HD Graphics
Wireless Type: 802.11bgn Wireless LAN
Hard Drive: 500GB HDD
rpm: 5400RPM
Optical Drive: DVD Super Multi
OS: Windows 7 Home Premium (64-bit)

I don't know specifically what part of the laptop is screwed up, and I don't know what part of it to replace to solve this
problem.
Help...pretty please? It would be awesome if I could use the U50F.