Yeah I've run into 'similar' problems with vmm32.vxd in the past. VMM32.VXD is a "monolithic" driver. That is, it's an archive of many drivers used by Windows (*.vxd files)...all compressed into one file for the sole purpose of making the bootup process faster.
What does that mean to you? Oh, probably not all that much.

Typically problems with this file can be easily resolved by a reinstallation of windows...but I don't think that's going to be so in your case.
I took a peek over at Microsoft's support site. They maintain a pretty decent knowledgebase.
Go here:
http://support.microsoft.com and search for the following articles: Q188867, Q191874, and Q194679.
The first article contains a good procedure for troubleshooting a Windows startup. Have you tried booting in safe mode or doing a step-by-step confirmation of device drivers? Press and hold the F8 key as soon as windows starts to load for the menu.
Oh, you should also try booting to DOS from a floppy and seeing if vmm32.vxd actually exists or not.
About finding the proper drivers for all of your hardware. It's not as easy as it may sound, but you've got the right idea. I've seen some real bizzare shit inside Compaq's and HP's and whatnot. Not at all easy to work on or troubleshoot.
Oh yeah, how does the recovery CD that you got with your computer work? Does it simply reCOPY everything back to the HD or does it reinstall everything? If it recopies then you *might* be able to extract vmm32.vxd from the disk and it *just might* work. Getting into iffy land here...
Bottom line: don't give up. What you're trying to do IS possible. Detail everything that you do, including word-for-word error messages and post them back here if you get stuck. Installing windows is NOT easy. Think of this as gaining experience
If none of this makes sense then blame it on 4:00am and too much Jim Beam. Why I'm sitting here writing this I have no idea...
Slackmaster 2000