Address Bar Is Grayed Out

My first guess would be that your data file is corrupted. To repair try booting from your system installation disk, "C" key. Go to the second screen pull down menu to Utilities > Disk Utility and select your hard drive in the left hand column. Now run repair till it runs clear then run the repair permissions. This failing you may need to trash the whole application and download and reinstall it. Remember you may have imported your bookmarks from Safari in the first place and those same bookmarks can be imported again.