|If the Windows XP disk is formatted the NTFS which it should be, the Windows 95/98 disk wont be able to read it at all. However as this is Windows Vista it is even less likely to work.|
An inability to boot into anything but safe mode usually indicates a driver problem. If it were anything that could be fixed by scan disk it wouldn't even boot into Safe Mode.
Leave the BIOS alone. Changing the BIOS setting on a computer that is not booting properly can easily turn a simple problem into a complicated one. Whatever the problem is, changing previously correct settings in the BIOS wont make it go away.
Do you have a recovery dsik, or a Windows Vista boot disk or any kind of disk designed to be used with Windows Vista. While in safe mode look in the device manager and see if the are any yellow question marks. If so, reinstall the drivers.
BTW way, the file name for |Internet Explorer is IEExplore.exe. You will probably need to enter the full path name from Safe Mode