I am having the same issue as many people have posted however my system will not allow me to even enter safe mode. When I boot up the system asks me for a login password for my profile ( I never had it setup to do this as it would load the icons for the 2 profiles and no password was needed ). When I hit enter on my profile name it then begins to login and shows the wallpaper for about 10 seconds and then logs itself out. I tried this in all modes I could using F8 but nothing works.
The last thing I did was use TrendMicro to scan my computer last night and it quarantined about 1400 files ( many IE and many having name Installer.exe ).
I can't find my XP disks so I can't just reinstall ( which is a nightmare anyway because then I need to reinstall all my other software so it regsiters ).
I downloaded onto this laptop a program BartPE but it will only burn me a recovery disk if it finds the Windows XP files on the system ( Which this Laptop doesn't apparently have in it ).