I was doing a windows xp repair using my windows xp setup disk, then the comp starts replacing system files, and after it reboots, the windows setup blue screen appears. I was panicking because it looked like a clean install (I need to keep my files). I reset my computer and now a blue screen will show up saying "Setup is being restarted" and reboots, and it keeps repeating. I tried to do the repair again but the "Setup is being restarted" screen will always come up. Thanks for any advice.

Try pressing F8 on restart and selecting Last Known Good Configuration.

I've tried that but it didn't work, hmm. Thank you for your suggestion though.

If you have a spare HD (with Windows OS on it), I suggest you backup your files from there. Once you backup your files, format the drive and install XP again. Expert™

I only have one harddrive on my computer, so I couldn't do that, or else it would be a good solution. Would it be too late to grab a new harddrive now to do the backup?