It could be hard drive failure, but with all the system 32 errors you're picking up, its more than likely that windows is up to no good.
There is a way to format the hard drive and then reinstall windows without having to boot windows at all.
You need to go to your BIOS, have a look where it details your boot sequence. Change it so that it boots from a cd, you can then restart the PC with the windows disc in the CD/DVD drive, and it should install or even repair from there. (if you could have accessed safe mode, you could have done a system restore, which could have taken you back to before norton was installed as well.)
Ok back to the process. Sometimes it takes a bit of hit and miss, because it is sometimes set to load the hard drive if there is nothing detectable in the CD/DVD drive. You could disable that, or load the disc as soon as the PC starts POST. If it works well, you will get a message saying press any key to continue, and it should give you the option to repair or re install windows. To remove everything off the drive, it will ask if you would like to format the drive before installing, and ask you which format you would like to use. for XP, I recommend NTFS. It's also not always a good idea to use quick format. I have found instances when I have used it, only to find that some files aren't really deleted.
After the format, the install should start as normal. It will reboot after formatting, and load again from the cd/dvd. It will load the same way it did when you started, but if you leave it, and not press anything it should take you to the install screen and take things from there. (I learnt the hard way. lol I love pushing buttons

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With hard drive failure, you usually get a "NTLDR is missing press any key to continue" message, which means that either the HD isn't plugged in properly or the disk has coughed its last wheeze. To fix that, you can just go to a PC store, get another HD and reinstall windows the way I mentioned above, using the same technique.
I hope it all works out and that you can get the PC running again.
Good luck
