Black screen on startup, now stuck at CHKDSK

Unable to boot Windows: SESSION3 (sometimes "Fatal System Error")

Yesterday my notebook was all fine. I shut it down and left my house until late night when I tried to power it on again, this problem occurs:
1. It was stuck at black screen for so long, I decided to hard power off and power on again.
2. It gave me 2 options: System Repair (recommended) or Start Windows Normally. I chose to repair.
3. Repair ended with a restart, but then a quick blue screen appeared saying "Fatal System Error".
4. Tried to repair again and this time it told me it has failed.
5. Used F8 and selected "Last Known Good Configuration". Again, it stuck at blank, black screen
6. This morning I tried to repair again and this time it went to CHKDSK. The CHKDSK completed (stage 3 of 3) where it said "Windows has checked the file system and found no problems." Along with the summary like
"nKB total disk space, etc etc until...
n allocation units available on disk.
..." (Where 'n' is some numbers)

But it just stuck in here, what should I do? It's been more than 3 hours. Should I force boot it again or wait for it?
My CPU's light indicator was blinking rapidly earlier and now it just blink once in a long while. So I doubt it is actually running at this point.

Please help. I hope my explanation is clear enough.
My notebook is running on Windows Vista Home Premium SP2.

Update 1:
Tried "Last Known Good Configuration". It will go to CHKDSK (I usually will let it run) and after it finished, blue screen appeared saying "SESSION3_INITIALIZATION FAILED" (sometimes "Fatal System Error")
Tried booting Safe Mode, it is stuck at one of AVG's drivers and went to the same blue screen (session3).
Used AVG Rescue CD and renamed all drivers related to AVG as per suggested by AVG team. Now Safe Mode stuck crcdisk.sys before it went to SESSION3 blue screen.

I also tried Restore Point before this, but it said I have none! (Despite logging in to admin account)

Update 2:
Used Windows Vista's Recovery Disk and ran Startup Repair. It said it managed to repair errors. Restarted and ran Startup Repair just to make sure, it indeed said it didn't find any problems. Boot Safe Mode again and the same issue still shows up: stuck at crcdisk.sys and then here comes the blue screen.

After that, if I run Startup Repair (from recovery disk) again, it will attempt to fix error again. This keeps on looping!

It sounds like you have a problem with your hard drive. You have no choice but to shut down by holding the power button for a few seconds until it shuts. If that does not work you must pull the plug. I will tell you up front, this is not the way to shut down and it can cause further damage to the hard drive. If you do shut down, I would back up my stuff right away.

richc46 said:

It sounds like you have a problem with your hard drive. You have no choice but to shut down by holding the power button for a few seconds until it shuts. If that does not work you must pull the plug. I will tell you up front, this is not the way to shut down and it can cause further damage to the hard drive. If you do shut down, I would back up my stuff right away.

Click to expand...

Thanks for your response! I understand forcing it to shut down will only damage my hard drive.

As for an update, after I shut it down, I tried running Last Known Good Configuration again and this time, after running CHKDSK, it said it fixed my "drvmain" but now the blue screen message changed, saying: "SESSION3_INITIALIZATION_FAILED".
I can't even run Safe Mode. It is stuck at avgidshx.sys before it leads to the same blue screen (session3).

It was all fine yesterday and today it feels like it's just completely broken now I am going to try AVG Rescue and will update my situation.

Update:
After using AVG Rescue CD, I renamed all 'avg' related files as per suggested by the AVG team. Problem still persists where Safe Mode now stuck at "crcdisk.sys" and comes blue screen "SESSION3_INITIALIZATION_FAILED".
I managed to get Vista Recovery Disk to run Startup Repair. It told me it finished repairing and I restarted my device to run another Startup Repair to make sure no more errors, and it did say so. I tried to boot windows normally and it said "Fatal System Error".

What should I do next? (T_T)