Blue Screen Error Proves MS Disk the Culprit

I received a custom built computer from customer with the Windows install disk still in the drive. Along with the computer he also handed me the CD plastic with the original serial. Figuring it was easier to just start the install from the disk that was already in the drive, I went ahead and booted from the CD. It would load for less than a minute before showing a blue screen with an error: "0x0000007E (0xc0000005, 0xf748E0BF, 0xF78DA208, 0xF78D9F08). Shrug possibly a random glitch. Two tries later I started going through the BIOS and hardware to find the problem. The RAM chip was installed in the second slot away from the CPU. Switched it over to the first slot to receive the same error.
When I first started the computer it wouldn't recognize my USB mouse or keyboard. Using the old school mouse connection allowed me to at least click the user name to try to enter Windows. It wouldn't load at all, just display a solid blue screen no text. The OS may have some how been loaded from this broken disk only to support this broken system. Problem Solved: Finally ejecting this disk that came with the computer and inserting my own, the system loaded. Inspecting this faulty disk I found a small yet deep scratch in the center right where the data begins.