off topic: Windows problem

  Hi all

I've been googling this but thought I'd tap into local knowledge!

I have a friend's laptop NEC Versa E2000, CPU 1500Mhz, 256 memory, 
4000Mb HD, WinXP I don't know if she has SP3 or not, and neither does she.

It gives the "We aplologize for the inconvenience, but Windows did not 
start successfully message ..."
She had not updated any software or hardware she thinks, but is totally 
awash with computers :-)

I've tried all the modes it offers, but the same message repeats over 
and over.  She doesn't have a WinXP disk, so I tried mine, but it won't 
go beyond admin password, where I simply pressed enter.

I can load a knoppix live CD and access the internet, so just wondering 
what ideas anyone might have?

Many thanks
Rose

She is open to using Linux, but I'd like to get any files back for her.  
I've read it could be a failing hard drive?  Is there a way I can check 
that using the knoppix live CD?