If you receive the subject error, your System hive is missing or damaged.
If the Recovery Console is installed, start it and jump to step 3.
If the Recovery Console is NOT installed:
1. Start the setup media and press R at Welcome to Setup.
2. Press C to start the Recovery Console.
3. Select the install instance you wish to repair.
4. Enter the administrator password. If this is a domain controller, you must enter the Directory Services Restore Mode Adminstrator password.
5. Type the following commands:
cd system32\config ren system system.old ren system.alt systemalt.old6. Copy the more recent of %SystemRoot%\repair\regback\system or %SystemRoot%\repair\system to the current folder ( %SystemRoot%\System32\Config).
7. Type exit to restart.
NOTE: Any services, device drivers, or program registry entries that where installed after the date of this System hive must be reinstalled.