To clarify any confusion, this is exactly what I did.
1.) Ultimate Boot Disc
2.) MadBoot v8.0
3.) Symantec Gdisk (delete all partitions)
4.) Restart
5.) Tried to install Windows, but still saw Smileys in between text. Talked with BFG Tech customer support and said they've heard this problem before. They said they will send me detailed instructions for RMA within 1 business day.
Also, in terms of a motherboard virus, I never knew these existed, but I do have Symantec Corporate edition on a nightly update and it seems to be reliable software. I also use "NoScript" for Firefox which disables all Java unless I enable specific sites. Hence, more evidence IMO for a hardware issue. Let me know what you guys think.