When you boot up in safe mode by typing the F8 key repeatedly after the BIOS POST test until the Boot Menu screen(black w/white text)appears and then have chosen 'Safe Mode' as the boot option, and after you see the drivers list being completed(white text on black background), there should be a waiting interval of 20 to 40 seconds at which point the Safe Mode loggon screen will appear with reduced pixel and color resolution. The familiar XP bootup splash screen(Microsoft Windows XP logo w/animated progress bar, green for SP1, and blue for SP2 and Professional) will not appear at all; If it does, that means your system boot options in the registry (SYSTEM/CurrentControlSet/...) have been corrupted or your BOOT.INI file is damaged.
You mentioned that your CPU ID had changed. If your computer's BIOS chip has been damaged, this will prevent XP from getting to its hardware. This is because the drivers aren't able to get a "handshake" from their respective "clients;" XP will reboot continuously until communication can be established. Also, Recovery Console will not work if the BIOS routines can't be accurately read.
You might want to take your computer apart and examine all the components and cables. Have you had any problems with your CPU fan? Have you tried a manual OEM extended POST test? On some computer makes, the default POST test simply glosses over the minor items without respect to the checksum result and reports that everything is OK, when in fact, there has been damage.