From what you are describing it sounds like your system has been hijacked by either spyware or a virus. It also sounds like you've either been infected for awhile or got hit by something bad due to the inability to boot into safe mode or booting into windows at all. I work at a tech store about 90% of the computers were working on are getting hit by similar problems. A lot of the time we just recommend to customers is a fresh install, but on a system where the time and effort is my own I try to do the following steps
The best way I have found in fixing the system is to try and do a system restore back a couple of days and then run your virus scans etc. You have several ways in which you can do that, normally just logging into safe mode works but it sounds like you've been infected to the point where your entire OS has been messed with so you cannot.
So here's what I think ya should do and you should either be able to get the system cleaned up/ completely recovered or stable enough that you can boot up get what data you need and then do a fresh install. I'm not sure where your tech knowledge sits but if you need any specific information just pm me or whatever, but anyway.
First of all:-
I'm kinda going off general information here and don't really know how you were/are running your rig, so I'm not sure if you've got system restore up and running, it normally will be running by default. But can be turned off due to the virus/spyware or if you turned it off yourself. If that is the case then just skip the restore bits that I mention and go right for the virus fix etc.
Do you have a USB jump drive which is over 256 MB ? If so just use your netbook to make the bootable device instead of the cd:
http://www.hiren.info/pages/bootcd-on-usb-disk
If you don't I've linked the images for a cd version and you can just use nero or whatever program to burn an image :
http://www.hiren.info/pages/bootcd
http://www.ultimatebootcd.com/
Either of those programs/collection of programs will work fine, Hiren has Antivirus & spyware removal programs on the image, where as with UBCD you will need to download them separately.
So I am assuming that you've downloaded either of those images and burn the disk, you need to get your system to boot to the disk. I will assume you know how to do that, its an option normally located in the bios. If you don't know and you bought a brand pc, HP, Dell etc. Let me know the model and I'll try and get you the steps or screen shots. If its one you built yourself get me the motherboard model and I'll do the same.
Anyway once you've gotten it to boot to the cd, you will normally get a menu system which will give you several different options, you will need to boot into the windows based environment. When it is done booting it should look something like windows with a start bar etc. If you do have system restore working then you just need to go to the start menu and locate the registry tools. Both of the cd's have similar tools, but the one your looking for is called Registry Restore Wizard 1.0.4
Usually located:-
Start menu -> Registry tools -> Registry Restore Wizard 1.0.4
If you load the program it will attempt to find your windows registry and you select the c:\windows etc and then choose next
It should then give you a list of restore points to choose from, I usually go a week out or some such, it will attempt to "restore" the system to that point. If it is successful it will usually give you an indication as such.
At that point you can normally just restart the computer in safe mode to see if it works, I normally always try safe mode first, if it does boot into safe mode you also should be able to boot into normal mode. If you are wanting to get information from your system and then do a fresh install you are at a point of doing so.
If you have any form of Antivirus or spyware removal tools installed, I normally would run them presently, they do need to be installed. Just update them and run them. I personally use Malware bytes and Spybot with AVG free, update them first and then run them, when they are complete remove anything found.
If you are unable to boot into windows etc, as in your still getting the same problems as before then you need to load up either hiren's cd or the UBCD and then run the Spyware/virus removal tools. The benefit of using the hiren cd as I mentioned before is that the disk seems to have up to date programs installed on the image. With UBCD you will need to download the program and put it on a flesh drive and have that plugged in when you boot into the windows environment.
So if you are using hirens:-
Boot back into the windows environment and run Dr web, Spybot, Malwarebytes. Run each of the programs individually this will make sure that you don't get double results and also that you don't miss anything. MB usually will get it most of the time, I've found with personal experience.
If you are using UBCD:-
Download Dr Web from this website
http://www.freedrweb.com/ and it will be a .exe file you will need to put this on a flash drive. The drive will need to be plugged into the computer when you boot into UBCD and just use the windows explorer to find it. Just run the exe file it should not ask you to update. But should run and when it finds anything just remove them as per normal.
So I am assuming now you have ran the programs and they have found several things, these normally will be either trojans or some form of hijacker. Once those have been removed you should be able to boot into windows normally. If your able to boot into windows and just want to grab the data from your computer and then do a fresh install now would be a good time. If you do not want to do a fresh install, then you'll need to run the same programs in your OS environment now, again I use Malwarebytes etc. Just install update etc etc.
I am not guaranteeing that your system is totally clean due to not seeing your system, or where your getting your files from, websites etc. But it should be clean or pretty clean and also stable. Make sure your running some decent AV program and you should be good. I hope this helped a little. I had some time to kill lol. Again if you don't know how to do something let me know and I'll try and help with that also.