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Windows XP restarting loop

PC in question is a new machine -  AMD Athlon AM 4200+/Gigabyte MB/2GB RAM. The error message I have supplied also has this "The Session Manager Initialization system process terminated unexpectedly with a status of 0xc0000034. The system has been shutdown".

I have performed CHKDSK with 'unrecoverable errors found' also and cannot boot in safe mode.

Will I get away with a system restore or will I have to do a clean installation. I have run a test on the Seagate HDD and it is physically OK although has a corrupted filing system as expected.

I am using latest version Spybot anti-spyware - could this be an issue
1 Solution
It depends on the number of filesystem errors and where they are located. How did you check the physical status of the disk? Also upload some of your minidump files.
comautokAuthor Commented:
I used Seatools to check the disk
comautokAuthor Commented:
I have just discovered that the owner of the PC tried to install some audio software and a mic from a disk that was a few years old immediately prior to the system failure...I wonder if this is the cause?
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>install some audio software <
So a System Restore may help.

And here's some ideas to follow in a previous thread>

"message on bootup - stop c000021a {fatal system error} the windows logon process system process terminated unexpectedly":
Trying to address all your questions/problems :
-  >>  'unrecoverable errors found'   <<   you may need to run it more than once, or run sfc /scannow from the run box (if you can boot) - if not ; a repair install can be necessary
->>  a test on the Seagate HDD and it is physically OK although has a corrupted filing system as expected.   <<  here you are mixing things : the seagate diag does not look for file system errors; did you run the long test? if not do so
->>  Will I get away with a system restore   <<   that depends on the results of the above
->>  I am using latest version Spybot anti-spyware - could this be an issue   <<   not to my knowledge
comautokAuthor Commented:
the Windows repair function has fixed the problem on this computer so thanks to everyone for their advice.

I do, however, have a question for 'nobus' or anybody else

When I run seatools it gives me an option to test the file structure; it says...." Examines FAT and NTFS partition, volume, directory, and file information. The test determines if there are data file structure errors in any partitions or volumes"

My question is, if the full diagnostic passes the drive but at the same time fails the file structure test does a format of the drive repair or remove these file structure errors. Does it mean that the drive is healthy but just needs formatting and re-partitioning?
The seatools, when it finds errors caused by file structure, you get an option to repair those errors. If that repair function still can't repair them then a lowlevel format should mark the sectors causing those errors as bad and they won't be used again. If a disk starts getting more and more of those errors you should replace the disk, as it is likely going to fail completely soon
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