i have the same problem described in the following link: http://www.GeekPolice.net/virus-spyware-malware-removal-f11/virus-worm-can-t-log-in-to-windows-and-bsod-when-trying-safe-mode-t16786.htm#118303

I ran Avira as described in the thread. The Avira download link in the thread is a newer version than the one in the screen shots.

Avira didn't help at all.

I've also tried booting with the XP cd and getting into the repair and recovery console. I tried to copy over userinit.exe to no avail.

Initially what happened was I got a pop up in the bottom right corner of my laptop that I knew better than to click, but without clicking it i suppose it infected my computer because the desktop changed to a background that said your machine is infected. The task manager was disabled. I ran McAfee and then restarted the computer, but now i'm stuck on a login-logoff loop. When i try to login from the welcome screen, it briefly flashes my desktop and then logs me off. I'm running XP ( believe sp2 or 3, i can't remember)

at the very least, i'd like to get the my documents folder off the HD. If there is an easy way to do that, I'll settle for that and get a new laptop. This one is about 6 years old anyway. If I can fix it, great!