I can't get why the restore application would try to load stuff from the 'C' drive, anyway, from a hidden partition, yes, but that wouldn't show as C:\windows\system32 , would it??? - is there an autoexec.nt file in that folder, have you tried having a look at it?
Otherwise if you have a burner you can download a boot disk image from
http://www.bootdisk.com/
- of course you don't get a 'proper' restore after formatting if your recovery disk still won't work, but you'd have a clean pc & Sony will presumably replace the recovery disk?