Well, either the dvd is bad or there is a hardware problem somewhere, because you should always be able to boot to the OS dvd. Do you by any chance know what the blue screen error was or can you recreate it and copy down the entire error message? Otherwise, you can do some basic troubleshooting:
1) Change the battery on the motherboard
2) Check the ram. To check the ram, download memtest (
http://memtest.org/). Burn it to a cd using a dedicated .iso burning utility (
http://www.petri.co.il/how_to_write_iso_files_to_cd.htm), make sure the cd drive is at the top of the boot order in bios, then boot to the newly created cd and run the utility.
3) Open the computer and make sure there is no dust buildup. Use compressed air to gently blow out any dust buildup.