Even though i have searched the web and have found many people with the same ERROR their situation is different. I get the same messgae

a fatal error in IE has occured at 0028:c0011e36 in vxd vmm(01) + 00010e36 Error was caused b Trojan-Spy.HTML.Smitfraud.c

but i get mine after i log in the computer. then it freezes and i can not do anything else. i cannot boot the computer in safe mode and when i try to boot from any cd rom i get the message

CDBOOT: couldn't find NTLDR

is there any who can help or point me in the right direction?

See about getting a Windows 98 boot disk with CD-ROM support. Then try to change to the CD drive, change to the CD's I386 directory, and run "setup". If you are able to do this, you should be able to load the Windows XP setup from there. This will allow you to use the Recovery Console or to reinstall Windows.