Microsoft Knowledge Base Article 329450 contains the following SYMPTOMS:

If you upgrade a Hewlett-Packard Pavilion or a Compaq Presario 6300-series desktop computer that is running Windows XP to Windows XP Service Pack 1 (SP1), and you then perform a non-destructive System Recovery operation, any of the following symptoms might occur:

When the System Recovery operation completes and the computer restarts, you receive an error message that is similar to:
File needed

The file c_20127.nls on Windows XP Home Edition CD-ROM is needed.

Type the path where the file is located, and then click OK.
When the System Recovery operation completes and the computer restarts, you receive the following error message, and the computer continually restarts:
Lsass.exe - System Error.
When you log on to Windows, your computer runs very slowly.
If you try to reinstall Windows XP SP1, the installation is unsuccessful.
Note For Presario 6300-series computers, this information applies only to computers sold in the United States.