Hi
It's a very odd problem that you have. Installing Microsoft Office shouldn't install any device level drivers (apart from a virtual printer). The fact you can't get past safemode sounds quite sinister. There's usually a thing called 'last known good', but my experience with it has been mixed - it doesn't work that often.
So, you've reinstalled windows into a new folder, which comes with its own problems, due to sharing profile and program file directories. But, the old copy should still be available when you boot up. You 'should' have two options when you boot, one will boot you into your old copy (which doesn't work), the other into the new one that does.
I would suggest the best course of action would be to first copy everything that is important off of your machine somewhere else. This can be done through the new installation - or parallel installation as it's known in the tech world. Then pop your windows XP CD in and it'll boot setup. When you go to install (don't press R to repair), it should detect the previous installation and ask do you want to repair it. Hopefully you'll be able to discern between the two installs you have (not sure - worse case, do both?). That should take you back to a fresh install, but with all your profiles, registry, applications etc. You should then be able to delete Windows1 folder.
The following webpage has excellent instruction; which essentially what I said but a bit more step by step.
http://www.michaelstevenstech.com/XPrepairinstall.htmGood Luck!
Tim
