The recovery console tries to perform user validation (i.e., password
checking) by reading some encrypted files on the hard drive. If these are
corrupt, it is possible that you might not be able to run the XP recovery
console.
Alternatives include:
(1) Try to obtain a Windows 2000 CD and use its recovery console. That is
reputed to be less sensitive about passwords and such.
(2) Try to run the recovery console from a set of floppy disks. Microsoft
calls these setup disks, and offers them as a free download.
http://support.microsoft.com/kb/310994
(3) Download, burn, and boot from a "live" LINUX CD, such as KNOPPIX.
These run LINUX directly from the CD, without installing anything on the
hard drive. The one's available in the last few years can read and write
NTFS file systems, the default for XP. These also have a large number of
driver, and usually auto-detect hardware correctly, even things that XP
itself can not handle without extra drivers. Link to KNOPPIX:
http://www.knopper.net/knoppix/index-en.html
(4) For specific tasks, try a bootable recovery CD, such as the free
Ultimate Boot CD:
http://ubcd.sourceforge.net/
(5) Or, make your own recovery CD based on XP via Bart's process or via the
Ultimate Boot CD for Windows. Both are free, but require a real XP CD, and
a working XP computer, but not necessarily the computer with the problem.
http://www.nu2.nu/pebuilder/
http://www.ubcd4win.com/howto.htm
KNOPPIX, Bart's, and the UBCD for Windows can all read/write files on the
hrad drive, and copy files to/from removeable media. These are great for
rescuing personal data (unless encyrpted). They can also be used to replace
system files, or manually store the registry from its backup.
(6) If everything else fails, you could consider a "repair installation" of
XP. This option is available on full-retail XP CDs, but not on OEM CDs.
But, a repair will not fix most registry problems, only system file
problems. The step after that is, of course, a clean install of XP.