1. After logging in to the Recovery Console and receiving a command prompt, type cd \ and press the key.
2. Type dir /w and press the key.
   A directory listing appears.
3. Read the directory listing and check for the presence of the following files: 
   
   ntldr
   ntdetect.com
   
   These files are required for the operating system to boot.  If those files are not present, they must be created.
4. To copy the missing file or files from the Windows® XP Reinstallation CD, type map, and press the key.
   A list of the drive letter assignments is displayed.  Take note of the drive letter assigned to the optical (DVD or CD-ROM) drive.
5. Type copy x:\i386\ntldr c:\ (where x is the drive letter for the optical drive), and press the key.
6. Type copy x:\i386\ntdetect.com c:\ (where x is the drive letter for the optical drive), and press the key.
   If you are prompted to overwrite the file, type y, and then press the key.
7. Type exit and press the key to quit the Recovery Console and restart your computer.
8. Remove the Windows® XP CD (if present) from the optical drive.
9. Boot the system to Windows® XP and test the system for the failure condition

Thanks for your reply. At this point, I can't even get into the Recovery portion of Windows set-up. I was able to get to a DOS prompt using the diagnostics disk, but the prompts didn't work. Do you know of another way to get into the recovery console? Thanks again for your help.

After checking the RAM and hard drive, it turned out to be a faulty optical drive. I was able to get it installed using an external CD-ROM drive. Just an FYI.