I can understand your fix, will your machine boot up from the hdd? System .ini is part of the start-up sequence, so you should not need to worry about it, you can find out what it it is and what is in it by pressing Start and typing in run msconfig, this will bring up all the sytem.ini cinfigurations.
If you can't get it to boot up, then I suggest that you get the original programme CD and do a re-install. All you need to do is to alter the BIOS to accept your first CD/DVD-ROM drive as bootable, then it'll boot OK from the disk, make sure the programme is put on your hard drive and you should be all right.
By the way, if you still have data on it, you can wave it godbye, since one of the things XP wants to do is to reformat your hard drive.
i work with Windows XP and after inserting some Ghost disk and restart I have got the message that PC cannot find system .ini and press any key - after I Made it PC was shotdown.All attempts to reinstall Windows were without success/ So now I work with Windows setup disk in CD. What to do?