Can’t load Windows

Win M/E.
Normal and Safe mode both locks up with a black screen and flicking cursor in top left.

Start using Floppy. ScanDisk and Surface scan both finish OK.

c:\DIR shows 10 Mg free should be 6 Gigabytes!

Attemp to re-install windows

c:\windows\options\cabs\setup

results in 16% copying files for windows setup then hangs.

Any Ideas?

Alan
c:\