dell factory restore option f11 not working, but will it even fix this problem?

dell inspiron 1525 windows vista, need to perform factory restore but f11 doesn't work, just loads forever then I get a blue screen stating that it had to terminate. ran diagnostic and got error 2000-0412. reinstalling by cd only brought up desktop and internet works but all my programs cannot run. unknown internal error on everything, including windows search, help, and 'find solutions', other programs such as microsoft office, itunes and adobe all get the internal error message and will not run. I need my office, i have papers to due for school so this is an emergency. I need these programs working as soon as possible. I have already ran a registry cleaner, a virus and malware scan several times and it finds nothing. I have done uninstallations and reinstallations but nothing different. Will factory restore work and fix these errors? and if so, how do I do it since f11 doesn't work? keeping it in mind the cd installation didn't work the first time and wouldn't like to try it again. Is this even a windows problem or is this my hard drive dying?