Most posts are over 6 months old on this one. I had just added a password to my user account this past weekend and was rewarded with this nasty error.
Before the logon page I get:
System error: lsass.exe
When trying to update a password a return status indicates that the value provided as the current password is not correct.
As with others, the machine reboots continuously after this happens with no interaction. I am unable to get into any safe mode and a repair (not the first one) does nothing. It has been well documented that it is not related to sasser, although I'm having trouble finding a definitive fix. In addition, there seems to be a contstant argument over whether or not is can be fixed without a wiping the drive, but no conclusion.