Ok can you get into safe mode?Keep tapping F8 untill you get choice menue?
But this maybe a hardware failure or have you got the FULL OS CD?
Does the laptop make any beeping noises other than the one post beep on startup?
If the keyboard is still functioning try this
Double click mouse
Mouse Is Not Responding
If your mouse is not responding but your keyboard is still functional, restart your computer, and then use either of the preceding methods:
1. Press CTRL+ESC, and then press U.
2. Press the UP ARROW or DOWN ARROW keys one or more times to select Restart, and then press ENTER.
Or this
When you restart Windows XP and the Welcome screen is displayed, your computer may stop responding: neither the keyboard nor the mouse work. When you restart your computer again using the F8 key, you may receive the following error
message:
System restart has been paused:Continue with system restart. Delete restoration data and proceed to system boot menu. This problem can occur when your computer enters into the Hibernate mode and accesses a corrupted memory snapshot.
To resolve this problem, select the "Delete restoration data and proceed to system boot menu" option which enables the computer to perform a normal restart, instead of performing the restoration process while the computer is in Hibernate
mode.
The Hibernate mode is a Power Management mode which can store the state of your computer in its primary mass storage device. The Hibernate mode is useful when you leave your computer in Standby mode for an extended period of time.