As your machine boots in failsafe mode, you need to determine which component is causing the problem. Have a look at the cheat codes:
http://www.knoppix.net/wiki/Cheat_Codes

You may have to try each one e.g. append noapic to the grub line to see what is causing the error.

Before you start grun in failsafe, press Esc, then e, this will change to edit mode and you can see which options the failsafe mode is using.
HTH