mm. I don't have that problem, I have linux on my comp and it works fine, and I can see my windows files from it, so they are there (Can't write to my windows disk from Linux tho, not even under root... ).
I have the exact same problem, except my cursor doesn't flash. I tried installing overtop of my old XP, but that didn't work.
I did the system restore cuz I tried to install a CD burner but the drivers made the comp unstable, even after I uninstalled the drivers.
I really don't want to reinstall my comp again... I just did it 3 weeks ago...