I arrived at work today to fine the BSOD with the above message followed with "The registry cannot load the hive (file):\SystemRoot\System32\config\Security".

1. I've tried restarting from the "last known good configuration file". That didn't work.
2. I've tried reinstalling the OS (windows XP), but when I restart with the XP disc I cannot get to the "Welcome to Setup" screen to get to the recovery console. It will only go to the F8 screen with the menu to select the safe mode etc. info.

Any suggestions would be greatly appreciated!!

This worked for me, so I will post it for others,

Thanks

At the Windows XP Recovery Console command prompt (C:\WINDOWS>), perform the following steps:
Type the following command:
cd \
There must be one space between cd and \.
Press the <Enter> key to display a C:\> prompt.
Type the following command:
cd system~1\_resto~1
Note the underscore character after the backslash.
An Access is denied message may appear. If so, follow the steps below:
Type the following command:
cd windows\system32\config
Press the <Enter> key.
Type the following command:
ren system system.bck
Press the <Enter> key.
Type the following command:
exit
Press the <Enter> key.
The system will restart.
Begin again with the first step under


Type the following command:
dir
Press the <Enter> key.
Among other information, the dir command will list one or more directories, such as RP1, RP2, and RP3. These directories contain Windows XP Restore Point data.
Make note of a recently created RP directory, but not one that was created in the past few minutes.
Type the following command:
cd rp<x>
where <x> equals the restore point data directory number (i.e. RP3) most of the time you would want to select the highest Restore point number.
Press the <Enter> key.
Type the following command:
cd snapshot
Press the <Enter> key.
Now to recover the regestry type in the following commands pressing enter after each on
copy _registry_machine_system c:\windows\system32\config\system
copy _registry_machine_software c:\windows\system32\config\software
copy _registry_machine_sam c:\windows\system32\config\sam
copy _registry_machine_security c:\windows\system32\config\security

If queried whether to replace the file, press the <Y> key and press the <Enter> key.

Type the following command:
exit
Press the <Enter> key.
The system will restart.
Remove the Windows XP CD from the drive as the system begins to restart.