I have had my laptop now for about 4 months. My problem is that when I start up the computer, it brings up the desktop, but with no icons. My Spysweeper program starts, but then it locks up. The Start bar appears, but will not let me click on it. Basically I can't interact with my computer at all. For some reason though, if I turn it off and back on 4 or 5 times it will bring me in safe mode. I have tried just going into safe mode at startup, but it just displays a list of files in dos(i guess it's trying to startup) but won't go any further.

I was thinking about just getting all the data off of my computer and rebooting it. I have messed around with litestep and also there is a bunch of crap on my computer that I don't want on it. What would be easier?

Check your Toshiba 'Recovery' software. It 'might' have an option to overlay windows without losing all your programs and data.

Sorry, I do not check for private messages

You could try doing an XP Repair Setup. It will not delete your existing Windows installation or its settings - it will fix things Windows knows how to fix, and replace Windows files found to be missing or corrupted. It probably can't fix problems caused by programs you have added, or those caused by malware.
You need an XP Home CD, and a valid Product Key for XP Home.
The following description is for XP Pro, but the procedure and what you see is identical to or very close to that for Home.

How to do an XP Repair Setup, step by step:
http://www.windowsreinstall.com/winxppro/installxpcdrepair/indexfullpage.htm

Typically, booting in safe mode in Windows XP does take a long time. It will display a list of files, then after a long pause, it will start. Give the PC some time to boot in safe mode, then try connecting a jumpdrive or something and get the files (and drivers) off it that you need, then reformat and reinstall windows with a recovery CD.