Related to this question (I too have had this error in an application). "Error creating window handle" due to too many non disposed controls.
Can this lead to Windows crashing and refusing to start, even refusing to be reinstalled, even when reformatting the drive (only quick reformat)? Because that seems to have happened to me.
Edit after answers and comments: I should have mentioned, this has happened to two identical machines (make and age) and another younger of different make. So with the first machines, hard disk failure is not unlikely but with the third, newer, getting the exact same problem has me wondering.