This is probably why you get the error:
Error Message: Windows Could Not Start Because the Following File Is
Missing or Corrupt: \Winnt\System32\Config\Systemced
http://support.microsoft.com/kb/269075/
It would have been easy enough to fix this from the Windows XP
installation, you can just move the Windows 2000 SYSTEM files as in the
article. Or you could have loaded the hive with the registry editor and
tried to reduce the size of the hive. You might still be able to do it
but there is no saying what exactly the repair utility might have done
to the files in question.
John