Application error! Need help

Hello im on my cousins pc trying to fix it but nothing i try can sort it out. When i turn the PC on it wants to check the drive for any mistakes. it does this and takes litrelly a few hours. then after that it wants to check the memory and that takes a few hours and then starts making a wierd bleeping noise.
So i stopped doing the cd drive check and tried to update windows to see if that would help. But it didnt. Then i tried doing a system restore but that is really picky and it didnt work the two times that i tried it.
I went on admin setting and looked to see what was wrong. It seems there is something wrong in the system 32 folder in windows with a programme called Dr Watson Debugger. it keeps coming up saying there is an error with that. i sent off an error report aswell.
can any one help?

Event Type: Error
Event Source: Application Error
Event Category: (100)
Event ID: 1004
Date: 11/26/2006
Time: 1:37:00 PM
User: N/A
Computer: ACER-684C9A655D
Description:
Faulting application drwtsn32.exe, version 5.1.2600.0, faulting module dbgeng.dll, version 5.1.2600.0, fault address 0x00069bda.
For more information, see Help and Support Center at http://go.microsoft.com/fwlink/events.asp.
Data:
0000: 41 70 70 6c 69 63 61 74 Applicat
0008: 69 6f 6e 20 46 61 69 6c ion Fail
0010: 75 72 65 20 20 64 72 77 ure drw
0018: 74 73 6e 33 32 2e 65 78 tsn32.ex
0020: 65 20 35 2e 31 2e 32 36 e 5.1.26
0028: 30 30 2e 30 20 69 6e 20 00.0 in
0030: 64 62 67 65 6e 67 2e 64 dbgeng.d
0038: 6c 6c 20 35 2e 31 2e 32 ll 5.1.2
0040: 36 30 30 2e 30 20 61 74 600.0 at
0048: 20 6f 66 66 73 65 74 20 offset
0050: 30 30 30 36 39 62 64 61 00069bda