Can Only Access XP with MSDaRT

My friend's computer got nuked and I think by a Trojan which AVG found(Which they didn't write down) and couldn't dispose or clean. I'm trying to recover the system for them but the computer will load up to the options menu and when I try to start it in Safe Mode it just restarts and brings me back to the same menu.

I'm able to access the computer using MsDart and all her files are there but since I'm not a computer tech I don't know what to do from there.

Any help would be appreciated.

The computer has Windows XP SP2 and it's an Acer with AMD Turion 64 Mobile Technology(2.2 GHz), 80 gig harddrive and 512mb DDr2.

 

I would try to transfer their files and important folders to an external drive or Thumbdrive. Get isolated from the main drive then scan on another machine.
If they have the OS disk, consider a reformat and reinstall as a possibility.
Save the files and folders before doing anything else.

 

Doesn't Dart have a tool to run system restore? Roll the system back to booting and fix the issue.
Or try "Windows over Windows" to fix the current install.
If I remember correctly, hit enter at the first repair option, then the install will find your previous install and select repair.
Ins:
Boot the computer using the XP CD.
When you see the "Welcome To Setup" screen, you will see the options below
This portion of the Setup program prepares Microsoft
Windows XP to run on your computer:

To setup Windows XP now, press ENTER.

To repair a Windows XP installation using Recovery Console, press R.

To quit Setup without installing Windows XP, press F3.

Press Enter to start the Windows Setup. do not choose "To repair a Windows XP installation using the Recovery Console, press R", (you Do Not want to load Recovery Console). I repeat, do not choose "To repair a Windows XP installation using the Recovery Console, press R".
Accept the License Agreement and Windows will search for existing Windows installations.
Select the XP installation you want to repair from the list and press R to start the repair. If Repair is not one of the options, END setup. After the reboot read Warning#2!
Setup will copy the necessary files to the hard drive and reboot. Do not press any key to boot from CD when the message appears. Setup will continue as if it were doing a clean install, but your applications and settings will remain intact.

from:http://michaelstevenstech.com/XPrepairinstall.htm

 

Thankyou Foogoo. That was very helpful. I hope you have a good day today. You're helpful energy spreads happiness to everyone.