Booting a Compaq laptop running ME

I cannot boot my Compaq laptop running Millenial Edition. I get the background screen, the intro chime, and the mouse works, but no toolbar or desktop icons. I run Task Manager and only one process is running: Appstat. I can boot into “Safe Mode”, but I get the same results. I boot “Step by step” and I get the same. I leave off reading the Registry, and all window drivers, but I get the same results.
I can boot from a floppy to DOS and so I have copied some files off the laptop. I can recover the original installation, but I lose my files. I have large Voice recognition files for my handicapped daughter that I want save that don’t fit on floppies. Any idea to allow me to boot or to move the files? Thanks.