X2!!
Once you are in msconfig, click on the startup tab and deselect everything that is selected. That should keep that program from loading up. Also will you're in safemode, uninstall any suspicious programs. If you can, download the trial version of this anti-virus/anti-spyware called ESET NOD32. Run it in safemode also.
If none of this works, as mentioned also take that hard drive out and put it in another machine. Unplug the CD rom of the machine you're putting it in and plug in that hard drive. The PC will see it as another local drive. Copy & paste all the data you want to keep off that hard drive on to the drive of that pc. Wipe that drive clean (format it) and start from scratch.