Computer Help?

Ok my friend was burning a cdrom on his windows XP and he finished, took it out and shut down his machine two days later all the lights where flashing on his machine and he pulled the plug out in the back. Then he tried starting it up and all that happened is his mouse started blinking and the power light blinked a few times and turned off and we took it apart and looked at the power supply and there was acid all over it so we decided to take out his hard drive and hook it up to mine to see if we could save it and all it shows is the do you want to startup in safe mode screen an when we try safe mode and safe mode command prompt it shows a bunch of files that are required to start it in safe mode than stops at IPVWMon.sys and freezes in any other mode and won't start I tried installing 98se but it says there's no files on it and when I make it the slave on my machine it doesn't read he doesn't have enough money to get it fixed