Ok, so I have a computer that is pretty much nuked, the disk is completely deleted because a virus corrupted my hal.dll file.

I could not use my Windows XP recovery disk because it would always end up going to a BSOD (blue screen of death). I can successfully boot up ISO's though. The installation was successful up until the setup says "Starting Windows Install" or something rather, then it would leave me to a BSOD.

I heard that if i used a Disk Eraser, I could just easily install a fresh version of XP. But when the Disk Eraser, specifically Active@ Kill Disk, had I thought, successfully deleted the disk, I tried booting up Windows XP install again. But to no avail, I got the BSOD again.

Is there a way I could save my PC, or does this really mean I have to buy a new machine again?

If it is BSODing at windows intall then it's not a software issue. You probably have either a bad hard drive or a bad ram stick.
To check the hard drive out, you should be able to get some diagnostics software from it's manufacturers website.
To test the ram, google and get memtest and run it for 7 passes. If memtest comes up with any errors at all then you have a faulty ram stick.

Nevermind I fixed it myself, I had to change the SATA PROPERTIES or something like that in bios and i didnt get the blue screen after that anymore. thanks please close the thread.