Hi,
I didn't find a solution to this problem when searching google groups,
so I'll post my solution.

When editing the default.aspx home page through Front Page 2003 I
received the error-

soap:Server Exception of type
Microsoft.SharePoint.SoapServer.SoapServerException was thrown. A Web
Part or Web Form Control on this Web Part Page cannot be displayed or
imported because it is not registered as safe on this site. You may not
be able to open this page in an HTML editor that is compatible with
Microsoft Windows SharePoint Services, such as Microsoft Office
FrontPage. To fix this page, contact the site administrator to have the
Web Part or Web Form Control configured as safe. You can also remove
the Web Part or Web Form Control from the page by using the Web Parts
Maintenance Page. If you have the necessary permissions, you can use
this page to disable Web Parts temporarily or remove personal settings.
For more information, contact your site administrator.

When browsing to the page through IE, all was fine.
This is a development server, so natually developers will play around
and things start to fall apart. What I did was
1. Remove webpart that I thought was causing problem through stsadm -o
deletewppacks xxxxxx.cab
2. In the web page using IE, Edit page-->Modify Shared Web
Parts-->Browse web parts
3. In Web Part Page Gallery (gallery containing all closed web parts
for page), there existed several webparts with ERROR! as their name.
4. Drag ERROR! web part on page and then delete.
5. Remove all ERROR! web parts.

Once this is done, I was able to edit the default.aspx home page with
no problems.
Unfortunately FrontPage 2003 can't handle pages with error web parts
that well.