Well reinstalling your PC (laptop) may not help coz you have problem with Physical Memory (RAM).There is just something wrong/bad on your memory imo.What is capacity of your RAM?Try to play other game than W3. If you get blue screen again, you have probably bad memory.In this case the best solution is to get new RAM.
this could help (at least it helped me), i had the same blue screen error ( with physical memory )options/sound - change your sound to miles emulated 3d , or smth like that
Its not about the RAM. Problem is in your Windows. I also have W7 and it has many bugs...For example I cant upload anything to web, or I get BSD (Blue Screen of Death). First I hear weird noise, and the BOOM! BSD, then I have to restart it, then I need to click "Start Windows normaly" blablabla...My recommandation: Install Windows XP (I would too but Windows 7 is best looking Windows at the moment)
I'll stick with RAM problem and try to add a solution:You said you have 3GB RAM. If you have 3x1GB RAM or 1GB + 2GB (Im not sure if they make 3GB RAM on 1 card) try to use only one RAM card, than other... If you get blue screen in one case that probably means that RAM you are using atm is bad.@editI've forgot you are using notebook/laptop so you are probably not able to unplug one of RAMs. Than you can try to limit your RAM. W3 needs 512 MB RAM I think and it is possible to limit RAM in Windows. If I find out how to do that I'll post it here.@edit 2Start-->Run-->msconfig-->Boot tab-->Advanced options-->Max Memory and set it to 512/1024MB.Maybe one of memory module on one of your RAM is corrupted so this may help. If you do this you need to restart you laptop. Than if you want to use all your RAM you need to go to that settings and allow all your memory and restart your laptop again.