Lines on the screen and BSOD Aspire 5940G

Hello, sorry if I missed category.
My friend gave my his laptop Acer Aspire 5940G, he said that he is getting blue screen very often and after restarting its still not working.
So I thought I will just need to reinstall windows (Its windows 7 64bit on laptop).
When I turned it on, everything went okay, so I go for 1st step, get latest updates for windows, updates downloaded and begin installing and forced restart, after restart this happens:

Image: https://us.v-cdn.net/6029997/uploads/editor/pv/px7lz9uzg58w.png

And now windows cant even start again.
That what was happen to him before, but first time when I turned it on everything were fine.

I thought maybe laptop overheated, but its not.
I think its hardware error, what else can it be? Why is this happening?