SESSION3_INITIALIZATION_FAILED BSOD error

I originally received an error message stating NTLDR is missing or corrupt. Hit CTRL ALT DELET to restart. Well, I figured I would load the XP Pro SP2 disk that came with the machine and try to copy NTLDR to the hard drive or do a FIXBOOT. Setup from the disc will load the drivers, then right before it gives me a prompt to Install XP, Repair XP, or go into Recover Console, a BSOD error pops up.

SESSION3_INITIALIZATION_FAILED

*** STOP: 0x0000006F (0xC0000020, 0x00000000, 0x00000000

The hard drive seems to be running, I tried re-seating cables. BIOS recognizes the hard drive. Removed CMOS battery and loaded setup defaults.
danishamAsked:
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XionathCommented:
Did you try another  CD or another CD-ROM drive, one of them may be faulty
danishamAuthor Commented:
Here is what happened. I had to set the SATA hard drive transfer rate in BIOS. Then I was able to boot the XP disc and saw the the recovery partition was intact but the C: partition was completely erased. Maybe some student erased it trying to be clever or a recent power surge might have zapped it, but is being plugged into a decent surge strip. Thanks for your help anyway!

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