Best option, as mentioned above, reformat the HD.
In general, if you cannot even get into Safe Mode, then something seriously is "hosed" and the likelihood of fixing it unless you have time and $$$$, are slim.
For example, a professional Data recovery firm/company will probably give you a bill I imagine above $100. Now, if the information on the laptop, is that valuable for you, then by all means check the yellow pages. I would not use a company that wouldn't at least give you a free "analysis", that is tell you if they can even save the information without a fee, or very minor (under $20-30).
Does she have the system restore CD/DVDs??
Depending on when/where she purchsed the laptop, she can try calling the company and pay a nominal fee for restore CDs. This is why I don't like companies putting the operating system restore files on a "hidden" part of the hard drive; if the HD goes KABOOM, you can't very well do a restore??
If she is unable to get system restore CDs, fresh OEM disks of WIndows XP Home (she prolly doesn't need Pro?)