Working fine in safe mode does not eliminate hardware issues.  The drivers for much of your hardware is not loaded.  Portions are either not running at all or at reduced features in safe mode.  This can easily be the case with a video card problem.  i.e. Works fine in safe mode, goes bonkers when using 3D acceleration and all that memory.  A dead fan or bad memory chip on a video card would actually behaive this way. 

Irene-