Windows XP Repair won't finish

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Well, that time of the year came around where XP was once again fubared. And usually, a quick repair install is all it takes. But this time the process simply won't work.

Everything goes fine right up until it begins setting up folders for the repair. At this point something I've never seen before popped up. It says it can't create WINDOWS\WinSxS\Manifests and that this process was needed for repair to continue. I'm given two choices - retry or exit setup.

No matter how many retries, the folder won't be created and I've exited and reentered the repair set up four times now. Same result.

Has anybody else ever encountered this, or know what it is and how to fix it?
 
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