Windows NT could not start because the following file is missing or corrupt:

On Windows XP Home Edition, got this message at startup:

Windows NT could not start because the following file is missing or corrupt:
Winnt_root\System32\Ntoskrnl.exe
Please re-install a copy of the above file.


Solution from Microsoft KB314477
Turns out it maybe a bad entry in boot.ini file.
Several approaches to fix this problem.

Method 2

Use the Bootcfg utility in the Recovery Console to correct the Boot.ini file:

1. Use the Windows XP CD-ROM to start your computer.
2. When you receive the message to press R to repair Windows by using the Recovery Console, press the R key.
3. Select the Windows installation that you want, and then type the administrator password when prompted.
4. Type bootcfg /rebuild, and then press ENTER.
5. When the Windows installation is located, the following instructions are displayed:
   Add installation to boot list? (Yes/No/All)
   [Type Y in response to this message.]
   
   Enter Load Identifier:
   [This is the name of the operating system. Type Windows XP Professional or Windows XP Home Edition.]
   
   Enter OS Load options:
   [Leave this field blank, and then press ENTER].
   After you perform the preceding steps, restart the computer, and then select the first item on the boot menu. This should allow Windows XP to start normally.
   
   After Windows XP has successfully loaded, the Boot.ini can be modified to remove the incorrect entry.

For more information about how to edit the Boot.ini file, click the following article number to view the article in the Microsoft Knowledge Base:

Performed method 2 but still seeing error message on reboot.

Attempting to fix bad sectors CHKDSK /r from recovery console and then I'll retry Method 2.
This also failed.  Rebuilding the machine.