1. Safe Mode option set within boot.ini file. A review of the literature (google) suggests the "boot.ini" file has a "/safeboot" option switch (essentially "Safe Mode") set on the line that controls the load of the operating system. If you remove this switch, the system should boot to "normal" mode and complete the previous installation. There are several ways you may manipulate the boot.ini file to accomplish this:
a. Rename boot.ini
b. Delete boot.ini
c. Rebuild boot.ini ("bootcfg /rebuild" recovery console command)
d. Edit boot.ini to remove "/safeboot" switch
The simplest is to boot Recovery Console and "rename" the "boot.ini" file, then use recovery console "exit" command to restart the system. By default, if the system is unable to locate the "boot.ini" file, it will look for the operating system at the default location "C:\Windows" (Hard Disk 0, First Partition, Directory "\Windows"). Once the previous installation completes and you're back in control of the operating system, you can correct the "boot.ini" file and restore its name.
The boot.ini is a "hidden", "system", "read-only" file. It is located on the system partition, so its full path is normally "C:\boot.ini".
2. Windows XP Recovery Console.
a. What operating system and service pack level did you reinstall; e.g. Windows XP Professional SP3?
b. What media did you use to reinstall Windows XP (restore/recovery partition, restore/recovery CD, OEM Windows XP Setup CD, Retail Windows XP Setup CD)?
c. Are you familiar with Windows XP Recovery Console?