It does reboot in safe mode, and we ran a chkdsk which completed 100% with no error. Norton tech support have told me it is a serious disc error which is nothing to do with them, it's just a coincidence that the LiveUpdate revealed it and have referred us to the system vendor, unfortunately the PC was custom-built about seven years ago and the company no longer exists. The boot failed and the PC no longer boots in 'normal' mode, it gets as far as the logon screen but (before any input) gives a blue screen STOP: 0x0000008E(0xC0000005, 0x804E6251, 0xB862c7DC, 0x00000000). I got various Norton screens saying 'One Click Support', 'loading support webpage', 'registering controls', 'loading' and after downloading a few more MB the PC suddenly started to reboot. I came home to find a 'results' screen that said three updates had failed to complete so I clicked the link underneath saying 'tech support'.
My partner running Windows XP SP2 today installed Norton Internet Security 2009 from a disc successfully, activated it, and set off LiveUpdate to get all the latest updates.