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You need to have your Windows CD in the CD drive when you run sfc. You should be using an XP CD that is slipstreamed with the same service pack that you have installed.
You may also want to do a ram and hard drive diag to cover your bases. Memtest86+ and HD diags are on UBCD. Link is in my sig.
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Can you boot normally now? You may want to run chkdsk too. Easiest way is for you to open my computer>right click c drive>properties>tools tab>check now button>check both options and click start>click yes>reboot pc. You don't have any bulging caps on the motherboard do you?