How do I re-format or take windows XP off w/o the recovery disk?

My Toshiba Sattelitte was not running properly and the virus scan was causing the machine to shut down.

After searching the internet for the symptoms (specific programs were starting w/o my control), i found that it could be a worm or virus. I then downloaded some spyware/worm software and it said i had a "Lampsey trojan horse". It wouldn’t take it off w/o paying some fee. I then dowloaded spybot and it kept crashing at the same point at every scan.

Then it would take forever to restart after locking up. I couldn’t do anything after logging in b/c it would freeze up. It got worse until now it won’t even boot up XP home edition.

It gives me the safe mode and other options but after selecting it flashes to a blue screen for bout 1/2 second, the drive makes a noise then it takes back to the same select safe mode screen.

I have my key code for the XP edition but not the actual disk.

I figure I have lost all my data, pictures, files, music but how can I get it to work ag

What would be the safest choice of data recovery?

This is Yahoo Answers backgroup history of problem:
http://answers.yahoo.com/question/index;_ylt=AuJEpv8y.lSuEPDsddHHsb_sy6IX?qid=20070619081033AAiykAR

I have reason to believe these are the safest options:

a) Remove the hard-drive, add it to another functional unit and transfer all the data to external portable hard-drive. Once data is secured, then do a complete re-install of operating system on problem computer.

b) Create Windows startup disk, use disk at startup effectively bypassing the "broken" startup files. Once into computer, manually move important data to external portable hard-drive.
http://articles.techrepublic.com.com/5100-10877_11-6031733.html (Option #1)

Does this second option risk any further problems or loss of data??? I can’t risk the loss of any data.

What is my safest option? I am under no time-contraints to do either option. Either action would be performed by knowledgable computer techie.

Any additional comments or things to be aware of?

Looking for best solution for remote backup across the internet using FTP.?

I’m setting up an off site backup system where my primary office & remote office send each other backups over the internet each night via FTP. My original plan was to purchase 2 basic PCs and then install a 500GB HDD in each PC with serv-u ftp server on them. The "sending" office would use SyncBackSE to send its backup to the PC at the other office where serv-u server is running.

I decided to try and find a more all in one solution. I’ve looked at and purchased a Hammer-Storage N1200 myshare device, but the FTP server on it is very flakey. I was going to try a LaCie Ethernet Big Disk instead but I’ve read a couple reviews saying the FTP server on it was also suspect. I’m willing to spend anywhere upto 0 (each office, 00 total) for a good solution. Does anyone have any recommendations? FYI - My backups will be around 100GB and I’m hoping to use SyncBackSE on the send (or source) side.