Acer Aspire 1 wont boot

here is what happened.
every now and then when I start msn messenger my mouse crashes. it freezes and up comes the do you want to report this error message and I need to plug in a mouse to click yes or no then my mouse works again. this happened so after I got the mouse working I shut down the computer. 5 mins later I went to start it and it comes up with the windows logo then comes up with the page do I want to start in safe mode etc no matter what I press it goes to start up then flashes a blue screen (too quick to read) then goes off and starts to boot up again.

it is still under warrenty. do you think its a hardware problem? any advice?

If it's under warranty, take it back to the dealer.

sounds exactly like hardware. though windows could be trying to restore the previous state from the hdd. which means theres a minute chance it's software. either way you should contact the vendor