Machine stopps booting at 'Starting Directory Services'

bookem

danno
I had a kernel panic yesterday, and ever since I can't get it to boot anymore. I've tried reinstalling 10.1 (I had 10.1.1), but that made no difference. In verbose mode, I get the message 'Netinfo conection failed for server 127.0.0.1'

I could really do with not having to format and reinstall, as I really need to use Office over the next few weeks, and the cd is at work.
 
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