what was the bluescreen error code?
can you get into the recovery console via the CD and run fixboot,fixmbr, and perhaps a chkdsk /f for good measure.
This can occur when NTLDR, NTDETECT, or one of the other core boot files is corrupted or missing on the HD. I've only seen it with floppy disks and those three files, but I imagine it applies equally well to CD drives since they can be higher in the boot order then the HD.