Question : windows xp recovery console Boot.ini /safeboot flag issues

I have spyware on my desktop which i tried to cleanup in safemode. when i tried to go into safe mode from the boot menu, it was throwing blue screen. I was able to do login normally. When I logged in, i opened the msconfig and clicked the safe boot option under Boot.ini. This is where my problems started.  Now when i tried to boot it in normal mode, it's throwing bluescreen, which i am assuming because normal boot is also pointing to safe mode. I am guessing 'Safe mode' bluescreen is due to spyware.

now, i put my xp cd that came with the desktop, i tried to go to recovery cosole. It was asking for my administrator password. I put the only password that i know, and it didn't work.

So I did another option. Instead of going to the recovery console, i entered 'setup windows xp' option, and then clicked on 'Repair' option. Bunch of files were copied, now when XP comes up, it comes up in 'Safe Mode' and get a dialog box saying 'windows xp setup cannot run in safe mode. setup will restart now'. now i am in a loop.

My question:
1. How can i edit boot.ini and take the flag for 'safeboot' off.
2. Is there any other way, i can get this back into 'Normal' boot.

Thanks a bunch for reading this patiently?

Answer : windows xp recovery console Boot.ini /safeboot flag issues

Use a bootable CD or take the drive out and hook it up to another computer.

Bootables I'd recommend:
Parted Magic - www.partedmagic.com (Click the 'Mount' tool on desktop to mount your HDD, a filemanager will open automatically)
Ultimate Boot CD 5: www.myubcd.com (you will need to start a DOS tool that offers Ntfs support)
Bart PE: www.nu2.nu/pebuilder/

I do not recommend Knoppix for tasks like this because it comes with a hidden root/admin account that may cause permission issues. It's easier with Parted Magic which is made to be a recovery OS.