booting problem

Recently I tried to install Win-xp on my pc running Win-me and aborted in between due to some problem. Now whenever Iam booting the pc it is giving two options to choose,

1.Microsoft windows
2.Microsoft windows xp set up
and asking me to choose one. For this I edited the c:\boot.ini file using notepad and removed the line corresponding to xp.
After this it started givingthe second option as Windows (default).

I edited agian the boot.ini and removed the line containing Default=C:\$WIN_NT$.~BT\BOOTSECT.DAT. Even then it is still giving two options to choose(windows and windows default).If Iam not choosing any option windows( default) option is getting highlighted and proceeding. After that it is trying to load windows files after a while it is showing
Windows could not start because the followinf file is missing or corrupt:
<windows root>\system32\hal.dll. Please reinstall a copy of the above file and aborting. However if I select Microsoft windows it is ok.

My current boot.ini has the following lines:

[Boot Loader]
Timeout=5
[Operating Systems]
C:\="Microsoft Windows"


Please help to remove this fault.

My pc specs are

Intel M/B 815EEA/ Win-me/256MB SDRAM/onboard video/sound.

 

See if this M$ KB Article helps.

http://support.microsoft.com/default.aspx?scid=kb;en-us;827324&Product=winxp

 

If you installed into different directories, you might try booting with a ME boot floppy and run "sys c:"

If you tried doing an in-place upgrade, which was only partially completed, you may have to finish the process or start it over again.

 

I transferred the system to C drive, after that it refused to start altogether and was showing this version of windows only runs in msdos etc, I do not know what had happened after that I tried to reinstall win me but could not fiinally I had to reformat C drive . Now the system is ok.