Windows XP does not finish loading after NVidia 5200 FX Driver Update

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I've experienced problems playing online games and playing stream videos from the net. They displayed a message regarding about my Video Card is not functioning properly. So I decided to update the driver. I chose the options Search Windows Update and the internet for updates and I also checked the "Install updates automatically" option. I even ran my own search for an update driver at the official site for nVidia. I didn't find anything on the site, but the system displayed a message that Driver Update is complete and a restart is recommended. When I restarted, Windows does not finish loading. I even tried waiting for my PC to finish loading after a lot of rebooting, but after the long wait, it restart by itself. So I ran Windows under Safe mode and use System Restore to recover my system's last good condition. But after that, Windows XP still does not finish loading.

What is causing this problem? What must I do to fix this problem? I'm thinking of formatting my drive but I don't wanna risk losing my important school projects, documents and files. Thanks in advance.

-masterely
 
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