Well contrary to what some thought, I must not be the only person having this same problem. I found this link the other night when I decided to try the re install. I see quite a few other people seem to be having the same trouble with Windows update right at the same time I did.

The number of posts has increased since I first found this site and description of the problem.

One guy seems to think it is this update that caused his problem.

kb971486

http://www.techsupportforum.com/microsoft-support/windows-xp-support/422311-bsod-safe-mode-does-not-work.html

Hope this might help others avoid or cure a problem.