Hi Varun -
The error you got indicates that your Hardware Abstraction Layer has gone corrupt. Unfortunately there’s no way to recover the file because it’s built when Windows is installed.
However, if you have System Restore running on the computer, you can bring it back.
If you can get to the startup menu (sometimes you can, sometimes things have gone too corrupt, you can recover).
From: http://support.microsoft.com/?kbid=304449
Start the System Restore tool at a command prompt
1. Restart your computer, and then press F8 during the initial startup to start your computer in Safe Mode with a command prompt.
2. Log on to your computer with an administrator account or with an account that has administrator credentials.
3. Type the following command at a command prompt, and then press ENTER:
%systemroot%\system32\restore\rstrui.exe
4. Follow the instructions that appear on the screen to restore your computer to an earlier state.
The above procedure won’t work when booted to the Recovery Console on a Windows XP CD.
Hopefully this will help.
Jef