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.
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.