Without knowing specific details of your motherboard, the answer is yes, almost certainly, to both questions. To boot into safe mode, tap the F8 key during the boot process and it should give you various options before it goes into Windows, including Safe Mode, Safe Mode with Networking, Normal (or something like that).
To boot directly from a CD/DVD, you have to go into the bios. Switch the machine on and as it comes to life watch for a message that says "hit F8 (or whatever) for setup". Then there will be a set of options about first boot device: change yours from the C drive to the X drive (where X is the letter of your DVD drive).