I have a similar problem which am yet to solve: when I started the computer after pressing F8 and selected the Last Good Configuration, the same problem appeared.
I have windows XP SP3 on this machine. All of a sudden, it has developed this problem: Most of the time, after the “windows is starting” logo, nothing comes up. Just a blank, blue screen. Even after waiting for long nothing changes. Occasionally, the press “Ctrl+Alt+Delete” to login prompt comes. And on entering the login/pass, again blank blue screen comes up. when I login into the domain..BUT when I login into my local computer, all the features (desktop icons) are present.