It boots into safe mode but not into real mode? Hangs at the point where XP proper starts loading? It may be either an application or driver. More likely a driver as they load earlier in the boot process. Have you tried updating the video driver? SP2 blew up a few installations in it's day because it is pretty touchy about drivers, especially mass storage drivers and video drivers.

Also, if you are successfully booted into XP SP1, go to the Gateway site and see if they have a Windows-mode BIOS update. This is an app you execute within Windows that writes the file temporarily to nvram and performs the update when you reboot. It then sets the "clear nvram" bit and reboots again.

Last edited by LightninJoe; 01/27/07 10:30 PM.