You may have caught a virus.. This laptop did (however as I recall safe mode did not work either)
Try this.. Get a command prompt you can do this by getting the boot menu and choosing "Safe mode with command prompt"
Type dir /s
and press return
Let me knwo.. Do you see a whole bunch of stuff flying by, or basically nothing.
If nothing type: Attrib *.* /s
Now you should get a bunch of stuff (NOTE For faster recovery omnit the /s)
Is ther a letter "H" on the start of each line or an "A"
If it is an A stop reading now I can't help you
IF it is an H.. Then you caught the same virus this one had. And your computer is in the same condition mine was when my daughter said "If you can get it working it's yours" I did, it is.
Type attrib *.* -h /s
NOTE: This will take a while, you have thousands of files it needs to edit most of them, and it will too.
Get a cup of coffee
Update your antivirus and fire wall soon as you get back.