There's not really many options left, you can try the following:
1. Delete the boot.ini file - As you're not dual booting and Windows is installed in the default location, you don't need boot.ini
2. Try running 'fixmbr\Device\HardDisk0' from the recovery console.
3. Reinstall...
Its not deleting from msconfig. Should I edit, delete & save?
First I will try the command you have mentioned.
I will have to think of reinstall as I guess reinstall may not solve the prob as the prob may lies with the combination install of winlite & wintoflash.