Hi welcome to daniweb,
Various conditions are usually the cause of this error.
This link gives various reasons and you should check out all of them;
http://support.microsoft.com/kb/330182
The possible causes given are these;
If this issue occurs after the first restart during Windows Setup, or after the Setup program is finished, the computer may not have sufficient hard disk space to run Windows.
If this issue occurs after the first restart during Windows Setup, or after Setup is complete, the computer BIOS may be incompatible with Windows.
Incompatible video adapter drivers.
A damaged device driver or system service.
If the issue is associated with the Win32k.sys file, it may be caused by a third-party remote control program.
jholland1964
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5,785 posts since Jul 2008
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Have you tried a Safe Boot?
Using the F8 Method
1. Restart your computer.
2. When the machine first starts again it will generally list some equipment that is installed in your machine, amount of memory, hard drives installed etc. At this point you should gently tap the F8 key repeatedly until you are presented with a Windows XP Advanced Options menu.
3. Select the option for Safe Mode using the arrow keys.
4. Then press enter on your keyboard to boot into Safe Mode.
jholland1964
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5,785 posts since Jul 2008
Reputation Points: 725
Solved Threads: 340
can reg cleaner help
Leave registry cleaners out of this. If you cannot boot to the operating system then a registry cleaner isn't going to work. Registry cleaners can be dangerous anyway so they are best avoided unless advised to use.
jholland1964
Posting Expert
5,785 posts since Jul 2008
Reputation Points: 725
Solved Threads: 340