Weird error message on Win2k Pro

[Dyne]

I have a laptop with Windows 2000 Professional installed on it. It is a Sony N505VE, with 128MB of SDRAM and a Celeron 333mhz processor. When I recently performed a scandisk on it, the computer found many bad clusters on the main partition of the hard drive, C. Since then, Windows will not start. It will load all the way up to the point where a login would appear, then blue screen, with the error message:
STOP: c000007b {Bad Image}
The application or DLL \??\C:\WINNT\system32\CSRSRV.dll is not a valid Windows image. Please check this against your installation diskette.

This computer is an ultralight from about '99, and thus had no built in CD-ROM drive. I bought it used, and it didn't come with the USB CD-ROM drive that came standard. Faced with no way of accessing my Win2k CD, I bought a TDK veloCD 52/24/48 USB 2.0 CD-ROM. Of course, this laptop does not have USB 2.0, but the CD-ROM is supposed to be backwards compatible. I put the Win 2k CD in the USB CD-ROM drive and powered up the computer. The CD drive seemed to have some activity going, but it didn't take me to the Windows 2000 CD, but instead kept loading Windows (failing, again). Does anyone know how I could fix this? Would buying a 2.5" to 3.5" IDE adaptor for the HDD work, so I could access it from my desktop? Is there something I'm not doing to make the thing boot? Also, can a computer this old even boot from USB? I can check the BIOS if anyone has any questions about those, as well. If anyone has any idea on how to fix this, I would appreciate it.

[andyms18a]

check the bios for first boot see if you can select usb all so look for and enabble usb dos suport. have you tryed booting to safe moad press f8 affter the bios finishes loading