Windows Not Logging In

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(Okay before you answer my question please note everything I have ALREADY done...)

I have an IBM Thinkpad T21. At the Windows Welcome screen, upon clicking on User/Administrator to login, the system PLAYS ME like it's going to login, but then logs right back out, going back to the User menu/Welcome screen. I have tried:

-Using the Windows XP install disk to reload the OS.
-Going to BIOS Menu and changing the start-up to CD Rom.
-Using F12 to pull up Boot Device and choosing it to load from the CD Rom
-Using F8 to load in each mode; Safe, Safe with Networking, Safe with Command Prompt, Directory Recovery

I absolutely cannot login to Windows XP to run command prompts or anything else. There is no way of reinstalling Winlogon.exe or even getting into the Windows XP disk without logging in first, as BIOS is not recognizing the disk.

There are no passwords set; I've run a scan on C: from F8, says its clean. I cannot extract anything from the CD, as it is not recognizing it, although the CD drive is functioning correctly.

I do know how to access System Recovery without going through the CD, so if anyone has any other ideas, please help. I would PREFER not to have to spend money on repair software.

I'm sure this is due to a virus.

THANKS for any help in advance!
 
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