When I power on the laptop it displays the "Vaio" logo and the screen after show, but after that the screen is completely blank but the backlight is lit. Nothing progresses from here. When trying to press f8 to boot into safe mode, nothing happens, black screen again. I created a windows 7 32bit install disk (I had the same OS on it before) to repair or even format my pc. I boot from the disk and it loads all the files and gets to the "Windows is starting" screen but after that it always hangs up on a blank screen with a mouse cursor. Is there any fix to this whatsoever?
Definitely seems hardware related. Try running a memtest on the machine and disk diagnostics. Most laptops nowadays have diagnostic software for checking the hard disk inside the BIOS. If you can't find anything to test the disk, Hiren's boot cd has some utilities for checking the S.M.A.R.T status of drives as well as performing tests.
If you can successfully rule out the memory and disk, my next bet would be on the system board itself.
Are you still under warranty? Sometimes it is a better choice to send the laptop in for repairs. It could save you time and you may end up voiding your warranty by tinkering with the machine.