Can't boot windows xp even in safe mode

I think the clue is "Even in safe mode"...

Do the recovery console from the install disk/whatever.

You can still disable automatic system restarts from the F8 boot options though, however I'd always verify the disk media first by running chkdsk /r first as a preference.
 
Id disable automatic system restart first to see if if its BSOD and then do a chkdsk depending upon the error and error code
 
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