1. Boot into the recovery console using your Windows XP CD.
2. Type: CHDIR sytem32 and press Enter.
3. Type: CHDIR config and press Enter.
4. Type: Rename Security Security.bak and press Enter.
5. Type: Copy C:\Windows\repair\security and press Enter.
6. Type: Exit and press Enter (this will restart your computer).
If all goes well, your PC should work. If not try this:
Quote from above:
"I had this problem and managed to fix it without a reinstall.
Create the disc at www.ubcd4win.com on a good pc and boot off of it on the bad one. Once in go to Start, Programs, Registry Tools, Registry Restore Wizard. Tell it where Windows is installed (C:\Windows usually). Then pick the date that you want to roll back to. I chose the one closest to todays date and it recovered it fine. Reboot and bingo! It's back. (Well it was for me...!)"
Source: http://www.askdavetaylor.com/lsassexe_system_error_every_time_i_boot_windows.html
More answers: my google search
I replaced the system file as needed.
I replaced the security file as directed.
I received the following error while booting into windows.
isass.exe - System Error
Security Accounts Manager Initialization failed becasue of the following error: A device attached to the system is not functioning. Error Status: 0xc0000001. Please click OK to shutdown this system and reboot into SafeMode, check the event log for more dedicated information.
Research: Micorsoft's Technet
http://support.microsoft.com/kb/316751
Copy the SAM File from the Repair Folder
loadTOCNode(2, 'resolution');
If you cannot restore the SAM file by using the Windows Backup utility, copy the SAM file from the following location
C:\WINDOWS\repairand paste it to this location:
C:\WINDOWS\system32\config
I replaced SAM file in windows/system32/config/SAM with windows/repair/SAM
EXITO
SUCCESS
