By default, windows systems don't load the Network Drivers in Safe Mode, means your computer's Network Card will not work. If you wish to access network or internet in Safe Mode, select "Safe Mode with Networking" from the Advanced Boot Options Menu. This will look similar to Safe Mode but you'll be able to access Internet or Network. In Windows xp, it should be the 2nd menu in the Advanced Boot Options while in Vista and 7, it should be the 3rd menu. Hope this helps.
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Safe mode is normally used to troubleshoot problems especially software and drivers. where you use this the computer boots up with minimum software running so you can fix problems. I am sure the modem or network drivers are not loaded and ect.
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