I am having the same problem.
I had a VIRUS on my machine which the REMOVAL instructions asked me to first
DISABLE SYSTEM RESTORE (bah-bye restore points). I did this, and then
following the remaining steps removed the lines from the registry after the
searchs were performed.
When I rebooted, I got the DREADED "lsass.exe - system error/Object Name not
found" message. It got to to the LOGIN screen, but would not log me on to
"MY" account or the ADMINISTRATOR account.
I booted with the SLIPSTREAMED SP2 CD, and went to the RECOVERY CONSOLE. I
was still unable to LOGIN to the Administrator account. Here is where the
FUN started.
I rebooted, and bypassed the RECOVERY CONSOLE, and it saw XP was already
installed and I chose REPAIR. It began the copying files, and rebooted once
to the GUI interface. It got to 39 minutes remaining and stopped. Sat there
for over 4 hours (I left it running). There was NO HDD or CD activity. I
restarted the machine. It immediately gave the dreaded lsass.exe error and
then kicked off the SETUP CONTINUING... It got to 39 minutes again and
stopped. I went to bed. 9 hours later, it was still on that screen.
I am unable to boot the machine without it starting the SETUP again. I have
since installed a BASE copy of XP onto another partition (what I am using
now). I DO NOT TO HAVE TO RELOAD XP totally on my C: drive and reload over
80 programs that I use constantly. How do I either CANCEL THE SETUP, or UNDO
IT?
I have another post on the lsass.exe issue. There has to be a way to
correct this without throwing in the towel and RELOADING from scratch.