windows xp wont run causing major chaos

HELP! On my laptop when i turn it on I get this message in white text with a black screen,

" Windows could not start because the following file is missing or corrupt: \WINDOWS\SYSTEM32\CONFIG\SYSTEM You can attempt to repair this file by starting Windows Setup using the origional Setup CD-Rom. Select 'r' at the first screen to start repair."

This is driving me crazy. I select R and nothing happens. It just continuiosly reboots and I have very important bussiness information on there which cannot be lost due to system recovery. So that is out of the question. I have bills that need to be payed and information that needs to be updated. So any of you who are familiar with Windows XP Home please give me your $.02 because this is a major inconvenience especially for the Christmas Holiday. Also this is a stock computer nothing has been modified and if i reinstalled windows would I still have all of my old information? Thank you all
abitavenger

Unfortunately, you have a corrupted Registry. The following MSKB article describes in detail 'How to Recover from a Corrupted Registry that Prevents Windows XP from Starting'...

http://support.microsoft.com/default.aspx?scid=kb;en-us;Q307545

The following is a quote taken from the above article...

When you try to start or restart your Windows XP-based computer, you may receive one of the following error messages:

• Windows XP could not start because the following file is missing or corrupt: \WINDOWS\SYSTEM32\CONFIG\SYSTEM
  
• Windows XP could not start because the following file is missing or corrupt: \WINDOWS\SYSTEM32\CONFIG\SOFTWARE
  
• Stop: c0000218 {Registry File Failure} The registry cannot load the hive (file): \SystemRoot\System32\Config\SOFTWARE or its log or alternate

The procedure described in this article uses Recovery Console, System Restore, and lists all the required steps in specific order to ensure that the process completes fully. After you complete this procedure, the system should return to a state very close to the system before the problem occurred. If you have ever run NTBackup and completed a system state backup, you do not have to follow the procedures in parts two and three; you can skip to part four.

Click to expand...

This next MSKB article describes the installation and use of the Recovery Console...

HOW TO: Install and Use the Recovery Console in Windows XP (Q307654)

You might also be able to do a repair install of XP, instead of having to manually type in all the commands listed in the above article...I would probably try this first. The following MSKB article explains in detail how to perform a repair install...

How to Perform an In-Place Upgrade (Reinstallation) of Windows XP

This is driving me crazy. I select R and nothing happens. It just continuiosly reboots

Click to expand...

In the BIOS (normally under "Advanced BIOS Features Setup Menu"), configure your computer to start from the CD-ROM drive (make the CD-ROM drive the first boot device) | Insert your XP CD while in the BIOS, save settings (F10) and reboot - (You can also boot with a 98/Me bootdisk with CD support and run Winnt.exe...located in the I386 folder on the CD).

When the "Press any key to boot from CD" message is displayed on your screen, press a key to start your computer from the XP CD | When you see the following message displayed on the Welcome to Setup screen, press ENTER:

To setup Windows XP now, press ENTER

At this point an option to press R to enter the Recovery Console is displayed...do not select this option | On the XP Licensing Agreement screen, press F8 to agree to the license agreement | Make sure that your current installation of XP is selected in the box, and then press the R key to repair XP | Follow the instructions on the screen to complete Setup.