cannot fully boot system after Spybot Install

I am running Windows XP Professional w\SP3.
Just installed and updated Spybot-S&D 1.6.2. After that I wanted to run the scan in safe mode, so I shut down the system to reboot in safe mode. Here is what happens now.

1. safe mode starts by loading a long list of files on a black screen.
2. black screen appears with safe mode in the four corners.
3. Windows XP blue splash screen appears.

There is no progress beyond this point, system hangs here. I also attempted a normal reboot, same result. This system worked fine before installing Spybot-S&D 1.6.2 . Don't know what to do about this. Please help get this system working again.:sad: