Can't boot to XP Home

My computer was working fine last night, but this morning, when i turned it on, it failed to boot into windows. Crashed while it was loading. No problem, I restart and get the choose startup type screen. I choose to boot normally, and it restarts. I choose last working configuration, and it restarts. I choose safe mode, and it starts listing drivers or something, and then restarts. I boot using the windows xp cd, and it starts the windows installation process. I restart and use a boot disk. I try to do "cd c:\" but it said that c:\ didn't exist. I booted using partition magic, and it said that the drive was full (which is wasn't) and that there was a problem with the drive. Partition magic didn't give me the option of fixing it. Luckily, i had 7.8 mb of unpartitioned space. So, how can i get windows working again? If i can just boot into windows safe mode with networking i can copy all my files across the network. I have backed up my data, but it is 2 weeks old.

It happened to the machine that I used to work on after power failure in the building and did exact same thing it keep restarting so the IT had to reinstall!