Winxp does not boot , only safe mode , system restore disabled!

I have not installed anything new either hardware or software. Here is the problem:

I can’t get into normal windows, it locks up showing the microsoft loading page. I can get into safe mode but I can’t sys restore as it says it is disabled and I cannot enable it unless I get into the normal booting .

I also cannot reinstall windows( it says file a1r347gv.sys cannot be copied because it is missing. I also cannot do a recovery as after I get into the recovery and choose option 1 ( c:
windows) It hangs after I put in the Admin password.

I scanned my pc in safe mode for viruses using Norton which was updated on 17/09/2007 and found nothing.

I also unhooked all the hardware and hooked it up back again including the ram ..

Any ideas?