Hal.dll Missing Or Corupt - Deleted Trojan

I scanned with adaware, spybot,and microsoft scanners. A trojan was found and a dll associated with it was deleted. A program(!updates.exe)was in my brother-in-laws user folder. I didn't think this was good, so I tried to start in safe mode to try to delete it and that was the last time the system booted! All I had was a grey monitor, no errors, just blank. I tried to boot to the recovery consol, but he had it pass word protected and his wife doesn't know what it was. So I decided to try the repair option, which failed! I then pulled the hd and installed it as a secondary master on another computer and was able to see that the boot.ini was changed and was probably the reason for the blank screen. I restored the boot.ini to what I feel is correct and now when booting up I get (missing or corupt <windows root>system32hal.dll) restore file.