Verify that the Undo folder is present. The Undo folder has the System and Hidden attributes. To view the Undo folder in the Recovery Console, use the "attrib -sh c:\undo" (without the quotation marks) command. By default, the UNDO folder is in the root folder of drive C.
Replace the damaged registry with a functional copy of the registry.
Microsoft has confirmed that this is a problem in the Microsoft products that are listed at the beginning of this article.
307654 HOW TO: Install and Use the Recovery Console in Windows XP
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303661 Uninstall Windows XP and Revert to a Previous Operating System