Is there anyway to force Workstation to Reboot an XP VM Into Safe Mode without having to hold F8 during the boot-up process..??
yes
create a boot.ini entry with this switches
/safeboot:minimal /sos /bootlog /noguiboot
and set it be the default
see http://support.microsoft.com/kb/239780
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VMX-parameters- Workstation FAQ -[ MOA-liveCD|http://sanbarrow.com/moa241.html] - VM-Sickbay
Start > Run > type msconfig then click OK or press Enter
In the System Configuration Utility click the BOOT.INI tab and then check at the least the /SAFEBOOT check box and then click OK and reboot.
Also have a look at: Available switch options for the Windows XP and the Windows Server 2003 Boot.ini files