Safe mode loads only a core set of drivers and services, so the
problematic bit might be in what's not being loaded. That doesn't
reveal much, though.
It appears that the Dell Dimension 8200 does not have onboard video, so
you must be using a video card. If it's a GeForce4 MX-420, you can
download the most recent driver set for Windows XP here:
http://www.nvidia.com/object/winxp_2k_93.71_2.html
I would recommend looking at your Add/Remove programs to see if their
are any nVidia video drivers in that list. Uninstall them and report
into "Normal" mode. Your video will be very basic, as it may just just
the standard VGA drivers. If that's the case, fire up your browser and
see if the problem has gone away. If it has, then we can suspect the
uninstalled drivers as being the culprit. Install the new drivers and
hopefully the problem will not return.
Another thought: If the IE install is just screwed up a bit, you might
get around that by creating a new user account. Try and and see if the
problem goes away. If it works and you're willing to move your files
over, great. If not, at least you have that diagnostic information.