Using Knoppix 7 to restore Win 7 to ASUS Laptop

I salvaged my granddaighter's old laptop as she was unable to get Win 7 (64bit) to boot. The screen after the start up is blank except for a blinking dash in the upper left corner. I was told that Knoppix could help to restore the system's OS (Windows 7 Home Edition). I purchase version 7.0.3 and have been able to boot up with Linux, but I'm not sure what steps I need to do now. I know I can get Linux running. but am unfamilier with the Linux OS. I don't have any experience with laptops.
My computer runs Win XP, but I do have a Win 7 disk that is brand new. I was given this OS in case I wanted to get rid of Win XP at some future date by the repair Techs that usually do work on my personal computers. I have built a couple of systems in the past, but now at 77 yrs old, I am happy to just be able to use them! I do have a wireless modem which was installed with my last upgrade, in case I can get this laptop running. Any help would be appreciated.
kenmist

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I was told that Knoppix could help to restore the system's OS (Windows 7 Home Edition).

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You cannot restore Windows with Knoppix. How to restore Windows you may ask in a Windows Forum.

Exception: For example a file like "explorer.exe" has been renamed by a malicious program, and you know what to do, you can reset with Knoppix the wrong name to the right name. If all went well Windows will start again.

The benefit of Knoppix is the ability to save important personal files from Windows to an external drive if the Windows drive isn't damaged.

Then my purchase was a waste of money?

Why purchase? You can download Knoppix for free and burn it to CD/DVD
http://www.knopper.net/knoppix-mirrors/