The might be a couple of problems. Firs to to simplyfy, the wpa.dbl creates an encryption using the hardware of the machine, so installing Windows in a different drive, will not work.
Since your repair got stuck at a point, there might be 2 possible problems here.
1) the repair got stuck because it could not access a file. Very possible with some spyware.
2) the repair just stopped working and you have different file version files.
Most likely it is a combination of both.
So, what to do?...I would try another repair install. If that does not work, I would backup the important data, and do a clean install. You could do an install in a different folder, but I find them messy, and with lost of wasted space, however, it does give the option to recover the programs little by little (a lot of programs will work from the old install by just running the exe).
Some spyware also affect the TCP/IP stack, did you try reinstalling TCP/IP?