ME: Reformat in DOS and reinstall from recovery discs HELP!!!!!

I am running eMachine etower 667ir
Win Me
intel celeron processor
667MHZ
64 MB of sync DRAM
256 MB Max
3D AGP
Graphic intel direct AGP

First I caught trojan horse download.keenval.e,c and b
in C:/_restore/temp. Turned off system restore and healed by removal.
My display settings are messed up and showing very little info in device
manager.
When I try to boot up in normal mode My Monitor blacks out
but the brain continues....(can use Safe mode only)
So I decided to completely restore system with recovery discs. Plenty of
error messages.
1) 0X0B read default (I click abort)

2)Single user version cannot do multiple loads (I click ok)

3)Critical error: 0X00 Attempt to write to a write protected disc (I
click abort)

4)Cannot open Ghost.ERR (I click ok)

5)Invalid file dump if problem persists contact ......
_____
Computer tech. said I need to reformat in DOS and then restore system.(he
wants $35 to look at and $85 and hr at approx. 6 hrs of his time)
That is where my head starts spinning!!!!
Please advice on steps to reformat and reinstall from recovery cds that
came with system.