Out of curiosity, can you hit CTRL+ALT+DEL 2 times in a row?
 
Also, can you get into your machine in safe mode? One other wondering of mine, can you just boot normally, and then wait for .... 10 mins, then see if you can do anything? Or, try last known good.....

In response to your questions:
1. Hitting Ctrl+Alt+Del any number of times does nothing.
2. Safe mode freezes up on the exact same screen.
3. I have tried waiting up to one hour to no success as well as the last known configuration and it still froze on the same screen.
 
Thanks for the help so far!

Have you tried, last known good configuration?
Do you have the XP install CD? If yes, you can try going into the recover console, by booting from that CD then hitting R (at the first screen), follow the on screen instructions exactly. Then when you get the the c:\windows you may want to type in chkdsk c: /p /r
 
If that doesn't work, you can try installing windows on top of itself. Which is basically a epair installation.
 
 

Late in the day, I know, but I had a similar problem where I get the CAD dalog but, when I actually *did* the three-finger salute, NOTHING happened! I trawled the net for WEEKS but gave up, resolving to rebuild. Weeks later, I picked the box up to do that rebuild and noticed that the battery had run down. Plugged it in, restarted and then noticed that the CMOS had seemingly cleared, as I had to confirm a bunch of "changes" (disk, etc) as it did the POST.
 
Intrigued, I let the thing continue into its normal boot and hey presto! I can now log in as normal.
 
So, my advice? Let the battery run down, then reset the CMOS yourself. There's normally a tiny push switch somewhere to do this: on mine, it was under the keyboard but yours could be anywhere. Check the docs.

Late in the day, I know, but I had a similar problem where I get the CAD dalog but, when I actually *did* the three-finger salute, NOTHING happened! I trawled the net for WEEKS but gave up, resolving to rebuild. Weeks later, I picked the box up to do that rebuild and noticed that the battery had run down. Plugged it in, restarted and then noticed that the CMOS had seemingly cleared, as I had to confirm a bunch of "changes" (disk, etc) as it did the POST.
 
Intrigued, I let the thing continue into its normal boot and hey presto! I can now log in as normal.
 
So, my advice? Let the battery run down, then reset the CMOS yourself. There's normally a tiny push switch somewhere to do this: on mine, it was under the keyboard but yours could be anywhere. Check the docs.

try booting XP from CD / go to repair / recovery console / start nr.1 and login.
start a 'chkdsk /r c:' (without hyphens)
 
let checkdisk do its repair
 
type 'exit' when it has finished
 
machine will restart, hopefully to a repaired Windows.
 
NOTE: do a chkdsk /r c: through DOSbox (run 'cmd') a regular intervals to be sure your HDD is still healthy.
 
You could also run HDDhealth continuously in Windows to keep that checked automatically.
You can find that here: http://www.snapfiles.com/get/hddhealth.html

Actually, in the recovery console, do a:
 
chkdsk c: /p /r
 
/p = exhaustive check of the drive even if the drive is not marked with problems and corrects any errors found
 
/r = locates bad sectors and recovers readable information
 
I always do both.