Windows 2000Pro constantly restarts, wont boot yet can go into safe mode

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I have windows 2000 pro with im guessing sp3

and here is my problem

i installed "daemon" program which allows me to load ISO files

well it prompted me to restart

the computer will go pass the Windows loading up screen then will restart, it will never reach the log on screen

i can access my computer through safe mode

i purchased my computer through a small shop, and i realized they did not include a Windows 2000 CD. I will contact them tommorow but here are my questions.

1. Simply what may be wrong? Virus..i dont think so I did a full system scan and found only two viruses and they were deleted using Zone Alarm Security Suite

2. Will I be able to reinstall or attempt to fix this without reformating

3. In safe mode, Can I backup files to a CDR

4. Can i upgrade to Windows XP instead of reinstalling all of this?
 
If you think Daemon Tools is the problem, try this:

Boot to safe mode, then go to \WINNT\system32\drivers, delete / rename d347prt.sys and d347bus.sys. Then try booting normally.

FYI, when Daemon Tools installer says you must restart, you don't need to. It works just fine without rebooting.

But you should install Service Pack 4 and fixes after that.
 
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