My computer is suffering from the Blue Screen of Death
I have a Dell Inspiron Laptop with Windows 7 and pentium processor less than a year old. I have no idea what caused it, I havent installed anything lately and I wouldnt know a computer driver if it hit me in the face. Started about 3 days ago, only works sometimes in safe mode

The first thing I would do is try a System Restore to before the problem started occurring. Good instructions here:
How to Do a System Restore in Windows 7

I already did that. I have done everything, my friend even restored factory settings! What do i do now?

Must be a hardware problem then.

Download Memtest86+ (you want the 2nd one Download - Pre-Compiled Bootable ISO (.zip)). Unzip it then create a CD from the iso file using your CD burning software. There is a good freeware burner called ImgBurn which will do this easily.

Boot the CD and run for at least 3 complete passes unless it shows errors sooner than that. Might even want to let it run over night.