Not booting & blue screen

Any help appreciated.
I downloaded AV Morpher to cut down some mp3 files into smaller chunks. It
did not work, and when I later tried to burn a cd I was given an error
message (can't remeber exactlly what) saying my device was not
connected/could not be found. So i restarted my PC, or at least I tried to.
I get as far as the background loading and then get IOS(OS) +0000 1ED1
ERROR: OE: 0028 C02C29AD blue screen of doom. when you press any key it goes
back to the sad lonely wallpaper, and control + alt+delete shows cmdninst
running for a short while, then nothing.
Ok, part2. Boot into safe mode, ok, virus scan, ok, scan disc, ok. So I try
system restore, and to my amazement it restored my system UNTIL..... you
turn off the pc. Then you have the same mess all over again. It won't boot,
blue screen and hooks up and you have to go to safe mode & restore. This is
not a solution, just a temporary escape route. I put the C02C29AD into
microsoft's web site but it's not found.
I'm running Windows ME on a Dell 410 Pentium 4, with a sony cd-r added.
Any advice appreicated.