Cant start up PC, failed to initialize?

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Exhonour

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My cousin stars up his PC and he gets error "The application failed to Initialize properly". He tried going into safe mode, he gets same error. He tried going into recovery centre, he gets error that ask for password that he cant get. He tried going into last known good configuration, it just restarts and same error.

What to do?
 
"The application failed to Initialize properly"

1. What is the application?
2. Look into Event Viewer for Error corresponding to time of the message:

You did not give up your OS, do the following is for Windows XP:

Start> Run> type in eventvwr

Do this on each the System and the Applications logs:
1. Click to open the log>
2. Look for the Error>
3 .Right click on the Error> Properties>
4. Click on Copy button, top right, below the down arrow
5. Paste here (Ctrl V)

He shuldn't need to use the Recovery Console for this.
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He cant start the PC at all, it doesnt let him pick the user. Its just a black screen with cursor after the error.

He says the application is something like LSASSS.exe
 
Spelling and the case of the first letter is very important for this because:

lsasss.exe or lsasss process info for w32/Sasser.E Worm.

It can show as either Name: LSASS SVR
Filename: lsasss.exe
 
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