[Ragnarok]

I have searched the internet but I cannot find anything on this subject.
I have a computer here that is being a pain. I know, I know, most computers are a pain, but still, this one is a really, really big one.

The situation is I turn the computer on and immediately the processor is at 100%. It takes forever to load windows, even longer to open task manager, and then when TM is open; it does not show any items that are using more than 1% of CPU power.

I can hardly do anything at all because it takes literally 5 minutes to perform any type of action; including opening the start menu. I keep trying to boot from CD so that I can just wipe and reinstall everything, but when it boots up and says to "hit any key to boot from CD" it will not accept any key from the keyboard. It is as if the keyboard is not even there. The keyboard is USB and I have tried it both with USB and using a converter to change it from USB to standard plug-in (forgot name of connector).

Have any of you guys ever seen this type of behavior before? If so, what is the recommended course of action?

Thanks for your help!

Edit: Strange...I just powered it up to mess with it and now the CPU is jumping around anywhere from 25% to 99%. This is the first time it hasn't ran at 100% constantly.
However, if I so much as shake the mouse really fast it jumps up to 100%.

Here is a list of the active processes:
taskmgr.exe - run by user - 38 CPU
rundll32.exe - run be user - 00 CPU
explorer.exe - run by user - 08 CPU (ranges from 06 to 09)
spoolsv.exe - system - 00 CPU
svchost.exe - local service - 00 CPU
svchost.exe - network server - 00 CPU
svchost.exe - system - 02 CPU (ranges from 00 to 03)
svchost.exe - system - 00 CPU
lsass.exe - system - 03 CPU
services.exe - system - 00
winlogin.exe - system - 00
csrss.exe - system - 00
smss.exe - system - 00
system - system - 00 (ranges from 00 to 03)
system idle process - system - 50 (ranges from 48-52)