"NTLDR clears the screen and prints its version information: OSLOADER V4.0. The first two files that NTLDR loads make up NT's core: ntoskrnl.exe and hal.dll. Both files are located in the <winnt>\system32 directory. Ntoskrnl.exe contains the Kernel and Executive subsystems (e.g., Memory Manager, Cache Manager, Object Manager), and hal.dll contains code that interfaces NT to the computer hardware. Hardware abstraction layers (HALs) can provide interfaces to proprietary hardware, so Microsoft makes it possible for OEMs to supply custom HAL files. If NTLDR fails to load either of these files, it prints the message Windows NT could not start because the following file was missing or corrupt, followed by the name of the file.
Now the user has the option to select the Last Known Good configuration by pressing the spacebar. After a successful boot completes, NT makes a copy of the Registry tree that contains static and dynamic system and driver configuration information, HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet, and marks it as the Last Known Good configuration. Because device drivers load based on information under the Services Registry key, this key is especially crucial. If a driver installs and at the next reboot prevents the system from starting, when the user selects the Last Known Good configuration, NT reverts to using the copy of the Registry tree that existed before the driver installed. Because the good copy does not include commands to load the driver, a boot using that copy will likely succeed."
315222 - A Description of the Safe Mode Boot Options in Windows XP
"If the BOOT.INI file does not point to the correct boot entry for Windows XP, you will get an error stating that Hal.Dll is missing . Simply correct the partition(x) entry in the BOOT.INI file or reorder the partitions in the MBR Details section of the boot item configuration."
A lot of info and ideas to be found there.
How to Use System Files to Create a Boot Disk to Guard Against Being Unable to Start Windows XP (Q314079)
I had the same problem with one of my client machines. Your best bet would be trying to copying that Hal.dll file from some other machines to a flopy and then boot the system up with it, or repairing windows. if still no success, then I would suggest to reinstall windows. I tried all the possible ways I knew and had to install a fresh copy of windows.
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