LSASS.exe application error

I have a desktop running Windows XP Pro W/SP3 that will not boot. It give an error of LSASS.exe Application Error when it starts up and when you click on OK it just reboots. I am unable to boot into any Safe Mode option. Restart with last known configuration does nothing as well. I am able to boot with a bootable CD to see if it will even load. I have tried to use a Windows XP disc to repair the install but it gives me a BSOD after loading all the files and before it starts up. Looking for any help possible. I know there was a lsass.exe virus at one time and not sure if this is it or not. Thanks in advance.

What antivirus program are you using?

I am using McAfee Enterprise v8.8

For test purposes remove McAfee temporarily and download and install free Microsoft Security Essentials:
http://windows.microsoft.com/en-US/windows/security-essentials-download
Also download this temp file cleaner:
http://www.geekstogo.com/forum/files/file/187-tfc-temp-file-cleaner-by-oldtimer/

I am unable to remove McAfee becasue I am unable to login to the computer at all. When computer boots up it gives me the lsass.exe error right away before even loading the login screen. I click on OK and it just reboots. I am unable to boot into safe mode and unable to repair the computer with a windows XP disc.

If you have an XP install disk, boot with it and when you get to the listed partitions, delete them and format. This will start a clean XP install, but you will loose all your data. You will have to re-apply all the XP service packs and 1000's of other updates

Is there a way around this without having to do a reinstall? I have already tried to repair this with a windows XP **** and get a BSOD.

Looking for a way around without having to do a complete reinstall. I have seen other post on this site to help with this issue w/o reinstall. I would like to a clean install to be the last resort...

If you are getting a BSOD when trying to repair XP, you have a hardware failure like a memory module or a failing hard drive. Also, check the motherboard for bad capacitors near the CPU socket