Yes - from safe mode make a new user account and set that as the log in account. You have some corrupt files on your old main user account.
No, i said put them back one at a time (you'd already removed all and found your machine would boot) Your problem is in one (or more) of the following:
- an extension safe boot loads only required kernel extensions (some of the items in /System/Library/Extensions). You can navigate to that library after a safe boot and look at what is left in there The "disabled extensions are potentially one of your problems".
- Mac OS X v10.5.6 or later: A Safe Boot deletes the dynamic loader shared cache at (/var/db/dyld/). A cache with issues may cause a blue screen on startup, particularly after a Software Update. Restarting normally recreates this cache.
- A fonts other than those in /System/Library/Fonts (Mac OS X v10.4 or later). One of your peripherals may have installed a corrupt font.
- A font cache normally stored in /Library/Caches/com.apple.ATS/(uid)/ , where (uid) is a user ID number such as 501 (Mac OS X v10.4 or later). One of your peripherals may have created a login item that is hanging
- A startup item or login items (Mac OS X v10.4 or later).
I would verify your disk, and repair permissions while in safe mode. I suspect you have a liquid damaged HD.
I would also run Apple Hardware Test to see what problems it finds.
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