Some people also say that they got this error after applying a microsoft patch, did you do that ?
Either way, your system hive is corrupt. If this is a server machine that needs reliability I would suggest you don't do a quick fix recovery console style repair job, just backup the important data on that hard disk and reinstall. Then reinstall your patches (hey I know its a lot of work).
Can you try booting using the cd and repairing it
This option comes only if it is able to find previous version of windows in the HDD ,if you have messed with the back ups in the the past , well you wont get this option
It is is the Third screen after booting through
The first being the option for the recovery console
The is second the lisence agreement wher you get to press F8
The third is the miracle screen it would take you directly to the existing partition information if you luck has ran out
or it would give you an option to press R to repair
Caution : It redumps every Major system file back to the hardisk
you might loose your My documnet folders
or is loaded in NTFS or FAT32 or you can try running a setup over set up in i386 folder again you might loose your MY documents folders