Blue Screen Error Code c00000135

but another Yahoo search pulled up the same code with basegoacw32 as the faulty file...

Anyway, try to boot to safe mode, this file should be disabled from running. Go to start -- run -- type
msconfig
press enter (or OK)

Go to the 'startup' tab and look through your startup options and remove options that are not needed (especially anything starting with 'Base')

Run your antivirus and Antispyware softwares as well.

http://www.ubcd4win.com/downloads.htm

Ultimate Boot CD for Windows from UBCD4Win. UBCD4Win is a bootable CD which contains software that allows you to repair, restore, or diagnose almost any computer problem. UBCD4Win is based on Bart?s PE and all software included are freeware utilities for Windows. In short, Windows PE is Windows in a disc. You can run Windows directly from CD without having a hard drive. I always carry UBCD4Win in my CD case with me.

With UBCD4Win, I can use any of the methods below to backup files from an unbootable Windows. First, I boot up the system with UBCDWin. When I get in to Windows PE, I can either:
- Plug in a USB flash drive and backup
- Plug in USB external hard drive and backup
- If computer has CD burning capabilities, burn data to CD
- If network is supported, backup data to server/computer.
- Backup to FTP using built-in FileZilla Client

The problem with the PC may be resolved by doing a Repair/Install.

http://support.microsoft.com/kb/315341

Have you tried performing a Restore with XP's built-in utility to a date prior to when the issue started occurring?

At first thought, it sounds like a possible virus or spyware, but it could be a corrupt driver.

Did I understand correctly? ... you cannot get to Safe Mode?

Have you tried booting to 'Last Known Good Configuration?' Let me know if you don't know how to do that or how to perform a System Restore (I do not mean the one using the Dell Recovery CD).