Hello Total
Until we can get you up to at least a stable safe mode, helping you with Virus and Malware is not going to go very well... Until then, your question probably will be redirected out of the Virus and Malware board. We'll see what Kimsland or another moderator thinks.
To get you started...
Possible Strategy...
Boot from Recovery CD...
Remove Daemon including the leftovers noted in the thread cited below.
See if you can boot now.
Run Memtest, just to run out any issues there. (See below re: Memtest)
Run Chkdsk to rule out issues there.
Repost your results from these tests.
Once we can get you to a stable desktop (even Safe Mode)
we can turn to other tools (Event Viewer and Minidumps) to find out what else is going on.
Re: Daemon Tools, try looking at this for hints...
https://www.techspot.com/vb/topic111130.html
Note 1 Avast conflicting with Daemon and 2. Memory...
You will want Memtest, see these threads
https://www.techspot.com/downloads/500-memtest.html and
https://www.techspot.com/vb/topic62524.html
Good news is you should be ale to run memtest from a bootable cd without having to deal with your boot issues right now... Just burn the iso ... For help burning an ISO...
https://www.techspot.com/blog/120/burn-iso-files-in-windows-xp-and-vista-with-ease/
Besides memory, another possibility is a hard drive error...
Can you boot from your recovery cd?
You may need to run chkdsk or other disk utilities from a recovery cd.