Boot on the XP CD and try doing a repair install first.
http://www.dougknox.com/xp/tips/xp_repair_install.htm
If repair install is not offered, then Windows is most likely beyond repair.
You can still do a clean install (do not format or partition) and your files will still be there.
Use a different user name, and then look for the files with Windows Explorer and copy them to the new user folder. I just did mine this way 2 weeks ago.
I run 2 computers at home, both connected to a single broadband connection via my main PC. I use an Origo wireless router.
The second PC runs WIndows XP Home, has an XP1700 CPU, a 20gig Maxtor HDD, a PCChips Motherboard, 128 meg of SDR.
My daughter was using the Internet for homework, and noticed that the connection had dropped, came to me, and I checked the main PC to find that the connection was fine. I advised her to reboot the second PC, and upon doing so, I was presented with the following message :
" windows can not start because its the file \windows\system32\l_intl.nls is missing" it also tells me to use the xp cd to recover this file.
I put the WinXP CD in the drive, got as far as the repair screen which presented me with a screen showing c:Windows ..... and tha, is as far as I can go.
I have searched the web for similar problems using Google and MSN. Other people have had the problem and have had no offers of a solution, or the questions and answers are in foreign languages I cant decipher.
Please, is there ANY way to fix this without doing a full format and reinstall? If not, is it possible to Reinstall Windows XP over itself yet keep all of my 3 daughters` music, art and homework files intact.?
Many thanks in advance.

Chowhound
Comic Vine
GameFAQs
GameSpot
Giant Bomb
TechRepublic