you should not post questions in this group
Had a chance to read up on this issue and I suspect I know why this is happening, but fixing it is a bit of a problem because we need to know what the bad file it.
The most common cause of this right now, is running a malware detection progam that deletes a file, but the registry still points at it. This, wsaupdater.exe, seems to be the most widely seen culprit, but it could potentially be other things, too.
Let's test it out.
Boot using your winxp cd.
Enter recovery console.
at the command prompt go to
C:/windows/system32
next type:
Dir *.exe
If you find, it, type
copy userinit.exe wsaupdater.exe
Exit and reboot normally. You should now be able to logon.
Run regedit
Navigate to
HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows NT\CurrentVersion\Winlogon\
In the right pane, you should see
C:\WINDOWS\System32\wsaupdater.exe,
Change it so that it reads:
C:\WINDOWS\System32\userinit.exe
That should solve the problem