The bizarre fuzzy effect is caused by the CRT not liking the frequency PC BIOS Screens put out and it only fixes itself once windows starts loading... It's not a fault!! However the Systems hard drive maybe failing an need replacing, but if you have the recovery discs for the game, try that first before replacing the drive.
When you get BSOD 0x00000050! It means there’s an issue with the page file. Windows cannot access the process memory needed to run the system from RAM. This is probably because it’s referring to an invalid memory address.