Install of Windows XP SP2 MCE

I'm getting this message at startup: Windows_root\System32\Hal.dll missing or corrupt:

I found this MS article: http://support.microsoft.com/kb/314477

Except the repair procedures don't work for me. When booting from CD and choosing the (R) Recovery console instead of seeing any type of menu or list I am eventually just dropped to a C: prompt. If I try the commands listed (bootcfg /rebuild) it says it can't access the C: drive. I cannot list the contents of C: either as it states it has some unknown problem. chkdsk on C won't work as it too says it has a problem.

So far I'm stuck. This is my PVR system and I'd like to be able to back up my SageTV settings otherwise I'm going to lose access to all my recorded shows from within its interface (as well as its settings of Watched shows). All the actual video content is recorded on other partitions and drives (D partition of same boot drive plus other separate drives).

Any help before I do something drastic like re-install Windows?

This type of issue has always been my greatest fear in running Windows. One day when you boot up the system will simply not work. It's like russian roulette every time you boot.