Windows\system32\config\system error on boot

when i start my computer i am displayed with the error

"Windows could not start because the following file is missing or corrupt:
\WINDOWS\SYSTEM32\CONFIG\SYSTEM"

it says i can repair the file using the windows start up cd by pressing 'r' at the first screen, but as i arrive there i can't find out what to do. could somebody please help me with my problem. i'm getting an itouch in the mail tomorrow, and need my desktop to get it ready!

1. Insert and boot from your Windows XP CD.
2. At the first R=Repair option, press the R key
3. Press the number that corresponds to the correct location for the installation of Windows you want to repair.
Typically this will be #1
4. Enter in the administrator password when requested
5. cd \windows\system32\config
6. On the command lie type:
ren system system.bad
7. On the command lie type:
copy \windows\repair\system
8. Take out the CD ROM and type exit

If that doesn't work, refer here for instructions on Repairing Windows

Microsoft's Windows XP Professional Repair Install step by step
Microsoft's Windows XP Home Repair Install step by step

thank you! i am able to boot into windows now, all of my stuff is there. but none of my drivers or it seems registry files work, ex audio, networking... is this normal?

Yes this can happen.

Strangely try restarting again (but whilst in Windows you may want to back up immediately)

We can get the drivers back, but not the data

1- the files located a (5) above are the REGISTRY files
2- performing on (6) has regressed the SYSTEM registry to a bare minimum

you need to recover from a System Restoe Point.

the procedure referencing the \repair folder is only STEP-1 of a THREE step process documented here:
http://support.microsoft.com/kb/307545/en-us

iv seen that several times before. although i dont have that problem now, i do know that it always asks for the admin pass. the problem is there is no admin pass, so i usually just skip the repair and do a simple overwrite WITHOUT formating the partition. so why does it ask for a password when there is none?

did you try just hitting <return> or <enter>??

Ophcrack bootable password viewer - will show your Admin password

How to Start the System Restore Tool from a Command Prompt

c:\windows\system\restore\rstrui.exe