It looks like SR.INF is missing, and you have some system files issues.
Go Start>Run ("Start Search" in Vista), type in:
sfc /scannow
Click OK (hold CTRL, and SHIFT, hit Enter in Vista).
Have Windows CD/DVD handy.
If System File Checker (sfc) will find any errors, it may ask you for the CD/DVD (rarely in Vista case).
If sfc won't find any errors in Windows XP, it'll simply quit, without any message.