Can you try hitting the F8 key before the computer reaches the XP loading screen. Select safe mode when the options comes up and do the followng:
Navigate to the Control Panel in Windows XP by left-clicking on Start, followed by Settings and then choosing Control Panel.
In the Control Panel window, open System.
Note: In Microsoft Windows XP, depending on how your operating system is setup, you may not see the System icon. To correct this, click on the link on the left-hand side of the Control Panel window that says Switch to Classic View.
In the System Properties window, click on the Advanced tab.
Locate the Startup and Recovery area and click on the Settings button.
In the Startup and Recovery window, locate and uncheck the check box next to Automatically restart.
Hmm it can't boot on safe mode. Can't really say for sure what's going on since I don't know the error. I'll see if i can find someone to help me out here.