Erase Specific File From HDD w/ Boot CD?

I've got a PowerPC G3 with Tiger. Yesterday, I created /etc/launchd.config to raise maxfiles to 1024 on startup, in an effort to better automate a backup program. After a restart, the computer stopped booting at the grey screen w/ spinner.

When I start up the iMac in either Safe Boot w/ debug or Single-User Mode, I get spammed with "file: table is full". Bottom line, if I could just delete /etc/launchd.config I imagine it would solve the issue. I have a Boot CD and access to USB drives - how can I accomplish this?