You can perform a Windows XP repair installation which might fix this.
Also if you have any unnecessary USB devices connected you can try to boot the system up without those connected. I have such a device a USB video capture box that I use for playing video game systems through my PC's display as well as recording game play content and on my one computer if I forget to disconnect the USB cable from this system, and shut down. The next time I go to boot my computer I get a BSOD with Windows XP Pro SP3. Until I unplug this USB video capture device the system will continue to bootloop with BSOD kernel crash and memory dump over and over again. If I plug it in after Windows is already to desktop it mounts with no problems and functions flawlessly.
A repair of the Windows install is your best bet for a problem like this, especially since its behaving in safemode with network enabled etc. Just wanted to mention the USB device nightmare that I have in case you have a USB device that is causing a similar issue at boot with XP. The video capture device I have is for Vista/7/8 and it might be why XP crashes on it at boot. The software surprisingly installed to XP, but the manufacturer may have at the last moment pulled the XP hardware cert from it and thats why the drivers install but its not listed as supported in my situation.