I think I agree that the hard drive is damaged somehow. I restored it again and this time, I ran CHKDSK on the C partition. It gets to verifying file data and the hard drive stops spinning at 2%.
I also used my Ultimate Boot Disk with diagnostic stuff on it to do a check on the hard drive (because now, after the restore) it was visible. It got to verifying the file data 2% done and now, the hard drive has been spinning for an hour and it's still at 2%.
It's going to be tough to find a hard drive for this thing. It's a lap top from four years ago and it doesn't have a SATA drive.