Previously I was using only 2 sticks of 2gb DDR3 ram..I purchased 4 identical sticks of 2 GB DDR3...

I powered the machine down..unplugged everything...hit the power button a few more times..removed the old RAM. Inserted all 4 sticks. I did not seat them correctly, the system would not boot and I had a red light on the MOBO near the ram. Powered down again and repeated the RAM. It went through normal start up..windows started its boot sequence and hung..it eventually ended up at a blue screen that said something like "there was a problem with starting windows : -)". It then tried to "repair windows" and an error pops up saying windows cannot be repaired...it then offered for a complete OS reset. However it fails to reset.

I switched back to the old RAM. Same issue. The BIOS recognizes both types of RAM. It shows 4gb right now, and showed 8 when I had the new sticks in.

How screwed am I?

Try blowing out the ram slots small hair or dust could be an issue.
Be sure to always start with 1 stick of ram and then add then one by one aftre they post.
Refer to mobo manual for ram positions, can also locate it online at the manufactures website.
Now both sticks are the same but can you read them closely and see if the voltages or the rev. # are different.

Unless you shorted out the system you should be able to get it to post.

Hrmmm no dice. Tried old video card as well

Tried taking cmos battery out. Ect

Any other ideas

The system posts so you may just need a new install of windows.
if nothing with that then you probably shorted it.

Shorted it..as in..ruined the motherboard?

correct

I see. Making a boot stick now.