Thanks Björn and Cornelius,
I
finally have my computer back to normal! I had a few complications but they were all overcome. Here is how I did it.
I used your advice to make a bootable disk image with carbon copy cloner. 231.79 Gb! This had my
entire hard drive. I tested it to mount which was successfully. Then I formatted the HD and reinstalled OSX. I wasnt able to use Migration Assistant however because of this reason: although my 300GB external hard drive was mounted in the Migration Assistant's window of available drives the disk image of my hard drive could not be mounted from the Migration Assistant window. It was merely an unmounted disk image within a volume and it did not show up.
So I went ahead as you suggested and "skipped this step and created a fresh user account" At that point I opened the Migration Assistant.app and created a second user account once I had mounted my old hard drive disk image "HD.sparseimage" [
see image above] It took a few hours but in the end it sucessfully restored ALL of my settings, down to my desktop background picture and placement of desktop files! All applications work, my bookmarks and firefox settings are all just like they used to!
After that I was having issues with folder permissions when I was logged into my restored account so I selected all the folders within the drive and used the shortcut Control
⌘I to get info for multiple items, changed all the permissions to my restored user, and clicked "Apply to Enclosed Items"
Then I deleted the empty user account which was created by default durring the fresh install of OSX.
Danke Schön!
Now I'm using PocketMac for Blackberry 4.0 which is funded by RIM (makers of Blackberry) and it actually works without crashing your OS! My advice to PDA/Windows Mobile 2003 users is to either sync with a PC or try Mark/Space Missing Sync.