Computer reboots at welcome screen

Hi,
I am trying to help a friend with this problem. Computer will post and boot up to the welome screen( not the login screen). It then automatically reboots and will continue as if in an endless loop. The computer will boot up in safe mode. I looked in event viewer, while in safe mode, and found an error message that reads something like "the computer has recovered from a bug check." It appears to me that this is the point where it reboots itself. I also tried a system restore but that did not work. Any help or suggestions are most welcome. Thanks in advance!

 

boot into safe mode and check your sys32 folder to see if any of your files other than the "driverstore" file are compressed. If so, then they will be listed with 'blue' lettering below them. If you happen to see any of these files compressed, then you have virus or some sort of malicious code that compressed your DLL files. I had to slave the hard drive into another PC and compress the whole thing. Then I had to decompress it and scan the crap out of it. After that, I ran a repair installation of the OS and the system worked fine.