windows xp Home Edition Issues

Hey all,

Have an issue, please help. It seems like a virus or a trojan but I can't seem to kill it. When I log onto XP the 3.5 floppy drive makes a horrid noise and then the GUI of XP starts up. About half way through the loading of auto loading things the mouse and keyboard start to go dead. I cannot click on shortcuts and my anti virus seems disabled. Control-alt-del will not work and I have to use the IBM quick fix (power button) to get out. That said, before a certain point (varies) I can click on shortcuts and the start button.

When I go into safe mode I can scan my files and get the virus, but it must be somewhere else. I have Norton 2005 and AVG Free. I scan with both. Could it be in the system restore files?

If I destroy those will I get my keyboard and GUI back?

Another question: Can you access the internet in safe mode?

Any help you could give me would be great!

Thank you!

XCOMEF