As I am not aware of what is wrong with the computer I was unsure which area to post in, so I hope i'm right to post here because I have a feeling the issue is hardware related.
Ok, so here goes. The computer in question was built a couple of years ago by my mate, I am a complete novice at the technical side of PC so just left it all to him. This is the spec from what I can see:
AMD 3000+ processor
MSI NEO2 FISR Motherboard
Kingston 512mb DDR 3200 Ram
Maxtor 120GB Sata Hard Drive
Nvidia Geforce graphics card (can't see which number but it should be fairly decent)

The problem is, I was on a game (Sim City 4) so not particularly stressful on the computer, I expirenced alot of slow down and i'm sure I heard ticking inside the tower. Then suddenly the computer blue screens but then restarts itself so quickly that you dont get chance to see the blue screen text. So I let it reboot and it gets to the screen asking if you want to restart in safe mode or normal, I just select normal and it gets to the windows loading screen and restarts again and will not go past that point. I've tried safe mode as well but it starts to partition things then restarts comp always with the blue screen as well.
I've tried changing the Ram and graphics card but the same thing keeps happening. Also tried putting the Windows disk in to re-install Windows but it says it can't detect a hard drive....so its a hard drive issue I hear you cry, but my Sata drive needs a floppy disk to install it, so i hook one up but it doesn't recognise that either.
I'm at a bit of a loss, I don't mind buying a new piece of hardware if I knew it would work.
Thanks for reading this essay and please help!

Hello 5cou53r Welcome to PCHF

I'm assuming you don't have a floppy drive to load those drivers off of. I can't find any article that shows a workaround for that. You can try a USB external floppy drive, but that may not work because those also have drivers that need to be loaded before they work.

You may just have to install an internal floppy drive to get your new SATA drive installed.

Definitely from your description it sounds like your hard drive is failing. If you want to be 100% sure, find the brand of the suspicious hard drive, go to that manufacturer website, and download a diagnostic tool. It should be a free tool to test the integrity of the hard drive.

Hope that info helps!

I have the floppy drive, it was used when my mate first installed the drive, but when I plug it in the computer just doesn't seem to pick it up. The floppy drive works because I tested it in another computer. Do you think it could be a fault with my power cables somehow? Even tho the same cable runs to my cd/dvd drive and that works fine.

I really doubt it. It doesn't even light up when you put a disk in it?

No green light on start-up...whereas on the other computer there is :S

I would bet the floppy cable isn't seated properly, or the floppy cable is bad before thinking the power cable from your power supply is bad. But of course it is possible. You can get a 4 pin molex to floppy power adapter if it does turn out to be a bad power cable.

Any of those situations are pretty rare.

Possibly pick up another floppy drive from a store (with a return policy) to test? Or test a different floppy drive from another computer?

Definitely check to make sure all the cables are seated correctly first, and that they aren't backwards.

Odd

Edit - Maybe the power light just isn't coming on. Have you tried loading the disk then hitting F6 during the Windows installation when it says to and seeing if it will find the floppy drive?