HELP! - GX260 XP ProReinstall Problem - Perm Safe Mode Appearance? HELP!

I have had this computer for a while now and all of a sudden it started going on the fritz. Having been given this computer from someone else, I had to contact Dell for the reinstall discs, which they gladly sent me. Upon trying to reinstall XP Pro, it must have errored about 10-15 times, saying it couldn't continue because of this and that. (Go figure, on the last try, it got thru the reinstallation process.

 

But, now, I'm in what looks like a permanent safe mode. I went to "settings" and it won't let me adjust the screen to anything but the default 640x400. It's horrible!

 

Needless to say, I checked some of the other threads and found that I should try the drivers and utilities disc. I did that and it still won't adjust. I then "trouble shooted" with properties and it suggested I change the "default monitor" but it doesn't allow me to browse to search to add additional monitors. (Let me just say, in all my computer years, i've never had to even go into the monitor settings).

 

I am at a loss and do not know what to do. Reinstalling w/the manual couldn't have been more B&W and I followed everything to a T. Should I reinstall again? HELP