The problem was this:

Several internal OS driver conflicts. It slowed down Windows XP as well ( a 4 min boot time). If you can boot into safe mode and your drives work then it is definitely this problem.

The solution is:

A complete format and reinstall of windows. An xp repair did not fix it. An inplace install did not fix it. A complete format and reinstall is necessary to remove the conflicting drivers. Be sure to back up your files to another disk first!