Good morning, mc.
The contents of this Boot.ini do indeed 'indicate' that there are two Windows installations. That's to say, based just on this file & what it lists, there's "an" indication there "may" or "should" be two Windows setups.
The first, on the first partition of the first hard drive. The second, on the second partition. (Note the values after "partition" ! )
Do you remember if you (or someone else) may have run another setup or possibly attempted a repair of Windows ?
HIGHLY Recommend: Make yourself a "save diskette / emergency XP boot" diskette, now !
How to Use System Files to Create a Boot Disk to Guard Against Being Unable to Start Windows XP
http://support.microsoft.com/kb/314079/
Put a label on it. Put diskette aside & in a safe place.
mc, kindly reply with your experience level on doing some repairs. There's no chiding at all as far as your level goes. I only want to have you do the fix safely.
One suggestion is for you to use XP's Recovery Console and run BOOTCFG.
To get to the XP Recovery Console:
Set pc BIOS boot sequence to boot first from CDROM. Boot from XP CD. Get
into Recovery Console. It is the second option line on the XP CD main menu:
it will say (on screen Welcome To Setup) :
"To repair a Windows XP installation using "Recovery Console" press R .
Select your Windows XP partition by number. (Jot down the partition numbers displayed. Typically, it is partition 1. Login to XP with administrator password. (Yours may be blank. If true, press the enter-key at that prompt.)
The Boot.ini can be rebuilt (repaired) by using BOOTCFG command from the XP Recovery Console.
To save the old 'boot.ini' first, you first run "bootcfg /copy".
Running "bootcfg /rebuild" rebuilds the BOOT.INI .
Exit the Recovery Console and then see if you can get back into XP.
References for Recovery Console:
Description of the Windows XP Recovery Console - Article ID 314058
http://support.microsoft.com/kb/314058/
HOW TO: Install and Use the Recovery Console for Windows XP
http://support.microsoft.com/kb/307654/
Post back with progress or any questions.