If the SR file store is corrupted, that is a cause of this issue.
Unfortunately, this can only be corrected as
follows, go to Control Panel, open System, go to the System Restore tab,
select, "Turn off System Restore on all drives and click apply and ok.
NOTE: this will wipe out all restore points.
Reboot the system as directed, return to the System Restore tab as outlined
above, remove the check from "Turn off System Restore on all drives," click
apply and ok and reboot. Then try System Restore again.
If that fails to resolve it, try the following link:
Troubleshooting System Restore in Windows XP
http://support.microsoft.com/default.aspx?scid=kb;en-us;q302796
Such corruption can be caused by restoring an image file, say Ghost or Drive
Image of the partition as often the file store will not recover in this
procedure. Another cause can be software that routinely runs cleanup on the
system and/or the registry. Many such third party applications don't
recognize the file store and end up corrupting it.
Since you cannot use System Restore under present circumstances, you can try
the following to correct whatever situation you are handling:
The following assumes you have an actual XP CD as opposed to a restore CD or
restore partition supplied by your PC manufacturer.
Go to Start, type sfc /scannow in the run box and press enter. Note, there
is a space between sfc and the forward slash. You will be asked for your XP
CD. Be aware, upon inserting the CD the XP setup screen may appear, this is
not a part of sfc /scannow, rather it is being invoked by autorun. Simply
minimize the screen and allow sfc to continue.
If the above fails to resolve the issue, try a repair install as follows:
Be sure you are well backed up in case there is a problem from which you are
unable to recover. NOTE, while a repair install should leave your data
files intact, if something goes wrong during the repair install, you may be
forced to start over and do a clean install of XP. If you don't have your
data backed up, you would lose your data should that eventuality occur.
Assuming your system is set to boot from the CD-ROM drive, boot with the XP
CD in the drive. If it isn't or you are not sure, you need to enter the
system's BIOS. When you boot the system, the first screen usually has
instructions that if you wish to enter setup press a specific key, when you
see that, do so. Then you will have to navigate to the boot sequence, if
the CD-ROM drive is not first line, set it first in the boot sequence. Save
your settings and exit with the XP CD in the drive. The system will reboot.
Boot from the CD. If your system is set to be able to boot from the CD, it
should detect the disk and give a brief message, during the boot up, if you
wish to boot from the CD press any key.
Once you have pressed a key, setup should begin. You will see a reference
asking if you need to load special drivers and another notice that if you
wish to begin the ASR (Automatic Recovery Console) depress F2. Just let
setup run past all of that. It will continue to load files and drivers.
