XP question - Safe Mode vs Diagnostic Startup

What is the difference between booting up XP in Safe Mode and Diagnostic Startup?

My PC has started to spontaneously reboot after ~ 5 mins, followed by an endless cycle of rebooting before it reaches the logon stage. I can boot into Safe Mode and it works fine but if I use msconfig to set it to Diagnostic Startup - i.e. only essential services loaded, I get the same problem.

What is happening in Diagnostic mode which is not happening in Safe Mode. If I know that maybe I can find the problem.

From Microsoft.com :

So it sounds as though some device driver is the likely cause of the problem.

Apologies for the double post but this piece of advice may be useful to you, taken from PC Today

I used msconfig to stop all services except those which run under Safe Mode. I also tried disabling SYSTEM.INI and WIN.INI. i.e. I tried to get it to boot in Normal Mode in as close a state as possible to Safe Mode. There is practically nothing left. Still the darn thing wont work. I want to know what the difference is between Safe Mode and Normal Startup with everything off.