If you have another comp/system NTFS enabled (NT4.0 SP6a or higher) you could mount that hard disk to that working system and do what you need.
If not you should use Khayman advice: boot to XP recovery console by pressing F8 right before startup screen (if you have it previously installed) or by using WindowsXP CD.
Only consider that a repair install just checks integrity and version of system files and will not revert back any harmful changes to your system. You use repair install when a boot file is missing or corrupted.
Since you need to delete a file, the recovery console command line is what you need (it lets you handle NTFS volumes just like dos with specific commands).
But if that damned file comes after a bad driver or service installation, its deletion will likely not fix your system... in this case you need to disable that specific driver or service to neutralize a previous harmful installation.
By the way, have you tried booting to the last known good configuration?
I would try the Recovery Conosole on the XP CD. Its a command line that can read NTFS. Just make sure to have your Administrator password ready. If not, press F8 and startup and try the varous options there for Safe Modes
Ep, glad to see you come back and tidy up...did want to ask a one day favor, I want to enhance my resume , was hoping you could make me administrator for a day, if so, take me right off since I won't be here to do anything, and don't know the slightest about the board, but it would be nice putting "served administrator osnn", if can do, THANKS