Windows XP Media Ed. Crashing in safe mode

A friend keeps getting an error about a bad driver causing problems, however no new hardware has been installed. When you attempt to run reg mechanic windows crashes claiming "page fault in non page area" even in safe mode. If you attempt to roll the system back, it crashes on start up. IF you run Macafee it finds nothing even in safe mode.

Any ideas? I told him dump windows XP media edition and do a clean install but he doesn't want to wipe the HD due to some programs he no longer has the discs for.