T60 not getting past "Checking embedded security chip

Of course my warenty ran out two months ago but this started last week.  It started as Firefox crashing and Act!2005 not starting the SQLSERVER service.  I ran all kinds of anti-virus and malware finders to no avail.
Now, during boot up process, it gets stuck and will not proceed past "Checking embedded security chip" during bootup.
I have researched the issue and tried several things like deactivating the chip and fingerrpint in BIOS but nothing seems to work.  At one point I was able to get to a WINDOWS login where you have to hit CTL-ALT-DELETE and it came up with my user name.  I entered the password I use during a normal login but it failed. I tried my user name@LENOVO-<my computer number> and that did not work either.
I am at the point of backing up through resue/recovery then burning a factory install disk and starting over but I REALLY(!!!) don't want to have to do that.
Any ideas are very much appreciated!
My machine is a T60 type 8744 purchased in January 2007.
Many thanks!

Hello T60user12, welcome to Lenovo forums.
I have merged yours threads cause it´s a similar problem.
Seems as you have messed up you system.
Which antivirus and firewall do you use?
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