Computer fine in safe mode but not in normal mode - hardware or software problem?

I would like a quick concensus before either trying to fix the problem myself if it is software or send it to the shop for an expensive hardware check. I have XP.

When I boot up my computer it starts up until the point when the blue windows screen appears for a millisecond then it shuts down with an exception, and then restarts itself ad inifinitum. Unfortunately it happens so fast I cant write down what the exception says.
In safe mode it starts fine and can run programs.

I suspect it is either a corrupted driver or a driver that is trying to access a bit of bad hardware. Any other possibilities and is there a site that tells me how to test this? I have tried rolling back the computer with system restore to when it worked fine, so that should have fixed any rotten drivers? I doubt it is a virus/trojan as I use lots of protection and have run the standard virus checkers etc which come up nada.

See if you can hit the Pause key when the error message flashes on the screen. This may allow you to see what the error actually says. Without that, any suggestions we could give you would be little better than guesses. It sounds like it’s most likely a software issue, though, since it does start in Safe Mode.

In safe mode, right-click My Computer, go to properties - advanced - startup & recovery settings - deselct ‘automatically restart’.

This will hold the blue screen rather than rebooting, so you can get the relevant information off it.

Sounds like it may be a driver problem. When it starts up in safe mode try eliminating drivers one by one (Not Video) and see if it starts normally.