A couple of clarifications needed, david.
when I take out the Network startup up file from my startup items folder, the computer starts,
How did you manage to remove the Network Startup file without starting up! If you can actually startup the computer to a point where you can remove files you don't NEED to use SU mode to deal with the relevant plist files.
It never gets to the prompt. That's what I mean. It ends with that last line I wrote in the original post
That IS the prompt, David. The fact that it is not letting you enter anything after you've got there makes me suspect its possibly a keyboard issue preventing you from using SU mode (don't use the bluetooth keyboard, use a genuine Apple wired one, if you wish to continue trying to use SU mode). THis doesn't really matter if you have other means of starting up to a point where the finder is operational though.
Before you got to the prompt ( localhost:\ root# ) did the following message appear?:
Singleuser boot -- fsck not done
Root device is mounted read-only
If you want to make modifications to files:
/sbin/fsck -fy
/sbin/mount -uw /
If you wish to boot the system, but stay in single user mode:
sh /etc/rc
Have you already tried simply booting up from your OSX / iMac DVD and running Disk Utility from it to "repair disk" and "repair permissions" ?
When undertaking any of the above troubleshooting , disconnect EVERYTHING that isn't essential (ALL peripherals - including your router - except for the keyboard and mouse)
Cheers
Rod