I made this over at TST - original guide can be found
HERE.
Summary Quote:
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To recover your operating system when your computer does not start correctly or does not start at all, you may want to install and use the Windows Recovery Console. However, Microsoft recommends this method of system recovery for advanced users only. Also, learn about the Recovery Console command prompt, command actions, rules, how to remove the Recovery Console, and how to install it during an unattended installation.
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Introduction Quote:
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Microsoft recommends that you use the Recovery Console only after Safe mode and other startup options do not work. The Recovery Console is recommended only if you are an advanced user who can use basic commands to identify and locate problem drivers and files. Additionally, you must be an administrator to use the Recovery Console.
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How to install the Recovery Console
To install the the Recovery Console; follow these steps:
1. Insert the Windows XP CD into the CD-ROM drive
2. Click Start, and then click Run.
3. In the Open box, type
X:\i386\winnt32.exe /cmdcons where X is the drive letter for your CD-ROM drive. Below is an image to show this step:
4. Click ok, and you should see an image similar to the one below:
Just simply click the 'Yes' button to continue with the installation of the Recovery Console. It will then attempt to do a 'Dynamic Update' to make sure you have the latest files, as shown in the image below:
Allow it to continue and when it`s finished, you will be presented with a screen similar to the one below, telling you that the Windows Recovery Console has been installed.

5. Press the
OK and remove the Windows XP CD from your computer.
Now, the next time your computer starts, you will have the option to start the Recovery Console.
How to start the Recovery Console
Once you have installed the Recovery Console on to your hard drive, follow the instructions below on how start it.
1. Reboot your computer and as Windows starts, you should see your startup options, as shown in the image below:
2. Now, with the arrow keys on your keyboard, select the
'Microsoft Windows Recovery Console' and press enter.
3. The Recovery Console will now start and list your Windows installations. If you have just the one, simply press
1 and then
enter to log on to your Windows installation. If you have multiple ones, you`d simply enter the number associated with the installation you`d like to work on.
4. Next, it will prompt you for the administrator`s password. Simply enter your password and press
enter, if there is no password, just press enter.
5. Once you have entered your password and pressed enter, you should now be presented a
C:\Windows> prompt and you can start using the Recovery Console.