so i guess there is no other option than format and re-install
Yes there is, you just need to fix it. Delete & reinstall rarely solves much in linux, because it is repeatable. It solves stuff in windows world. By booting on the cd, you can alter /etc/inittab to boot to console, if it isn't doing so already. About line 25, set it
and you boot to console. Download the 3.6 kernel source, and put it in /usr/src/linux-3.6.x. Run the following commands
cp /boot/config-generic-3.2.29 ./.config
make oldconfig #Answer the questions
make # you now have a 3.6 generic kernel
from here, best to follow install instructions here, and alter names for your version
Pick up the line after the make. Ignore the docs unless you're a programmer.