Hello ughi,
I can sympathise with you on this one, I've been in the same position and it's just maddening.
If you're getting error messages about the serial number it might be a corrupted registry entry, as can happen.
The more serious thing though is that checkdisk is running for several hours and not getting too far.
The first thing I have to ask you is:
Is there anything on the system you can't replace?
I have to ask that because if you do, then I'd let the repair run as long as it wants, then try booting it up and running SFC/SCANNOW. This will ask for your install CD and check that the critical system files are not damaged.
Myself I'd write it off as a bad job and reinstall windows, taking select format file system and not the...