My XP Pro installation had some problems, like certain services such as the installer service failing to start with windows and not being able to run windows upadate. Event viewer had a message that the services could not run in safe mode, event though I was not in safe mode. After ascertaining that the system was virus free and attempting an assortment of fixes, I decided to do an upgrade install. The installation proceeded until the reboot where no matter what I do I get "Windows XP setup Cannot run under safe mode. Setup will restart now".

I have access to the partition via Bart PE or by placing the drive in another system.

How can I get out of this loop? Why does my installation think it is in safe mode when I am not? Is this a registry setting? What services need to successfully load for windows to conclude that it is not in safe mode? Is there a way to back track?