BSOD error after trying Win XP Recover

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I have an HP P4 3.2 Ghz, 2.5 GB Ram, 200GB HD and 500 GB HD system. I had recently got a virus that I cleaned out with AVG. I decided to see if I had anymore so I downloaded the full-trial version of AVG and came up with around 5,000 infections and problems. At one point during the scan, AVG prompted me for my Windows Service Pack 3 disk to replace corrupted or bad files that the virus VIRUT had replaced. Didn't have one so I opted to continue and come back later. After the scan was complete, I may have inadvertantly deleted neccessary files for Windows to run properly after all infections were scanned. I rebooted and started getting lots of svchost.exe errors - c000021a Status of 0xc0000034.
I tried to reboot, restore and go to safe mode to fix everything. Didn't help. I removed AVG to see if that would make any difference and that didn't help. I downloaded the ISO file of Windows Service Pack 3 and though I couldn't get it fully installed, I don't seem to be getting the svchost.exe errors any longer. I have noticed however the loss of lots of 3rd party programs on my computer. I have tried to use my Recovery discs that I made when I first got the computer. Since I don't want to lose what's on my 200gb hard drive, I've been trying to do a recovery. Everytime I do (whether its through the bootup process, Recovery discs or a Windows XP Pro disc), it will start the process but then eventually get to the Stop Screen 0x00000024 blue screen. It additionaly says: (0x001901FD, 0x89E96808, 0xc0000102, 0x00000000). I have not attempted to do a full/fresh install on the main drive so I don't lose the info I have.
I can shut down and go through a normal bootup process and still access everything on my hard drive but I don't have access to things like Control Panel or other basic features. I can burn dvds/cds but I don't want to back up my info and end up saving what virus/trojan caused this in the first place.
Ideas, recommendations, tips? Thanks for the help.
 
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