That sounds like a hard drive or memory failure.
What I would advice is ...
1. Try to install windows again.
2. when you get to the blue screen, go down to the "technical information" line, and check if there is another line that says "***STOP: 0x000000XX" where the XX stand for two letters and/or numbers. (Examples: ***STOP: 0x0000008E , ***STOP 0x00000050, ***STOP 0x000000ED)
3. Once you have the "stop" code (0x00...) go to http://support.microsoft.com and search for the "stop" code. This is likely to return a Knowledge Base article, that describes the symptoms and possible causes and solutions for the problems you're having.
Hope this helps,
Ces
P.S.: Last known good configuration only works if, after seeing a blue screen (or having any other OS failure), you turn off the computer, turn it on and press F8 and select Last known good configuration at the Advanced boot options. But if you have already tried to restart the computer several times, and even reinstall the OS, this configuration is useless, since by this time the "last known good" has stored a corrupted configuration. Even so, if there is a blue screen while INSTALLING windows, usually the problem is hardware, not software.