XP repair install stuck at splash screen

My computer was infected with "Worm.Win32.Netsky" A popup displayed "Your computer has been infected! Security Warning! ". It also followed with several other popups saying certain services have been disabled. It also changed the desktop background to a green screen "Your computer is infected!" and you can open up the properties to change the background but it won't let you reset it. The bogus program "Internet Security 2010" popped up. I installed Norton Internet Security 2010 and it appeared to remove the virus, but after reboot XP went into a reboot loop that would not go past the welcome/log in screen. I did the XP repair install, but when the install was complete and the XP splash screen appeared with the 'Please Wait' message, the system would not proceed past that point. It stayed that way for several hours. When I rebooted it went through the boot loop again. I took the following steps as well:

fixboot
fixmbr
chkdsk /r

On reboot, XP booted to the welcome screen, I said yes to registering XP with Microsoft, and it froze there.

Any suggestions?