Windows XP: So windows won't start... Session manager initialization

So windows won't start... Session manager initialization

About a weeks ago I was trying to log onto my Windows XP Pro computer at home from the office. I do this all day everyday... well not that day.

I get some error telling me it can't connect.

When I get home the computer is not logged in and it lets me do so. Just seems slow... Well I will reboot! That was the end of that.

I get a Blue Screen that causes a restart.

F8 and try Last Known Good Configuration... NOPE

STOP CLONED DRIVE AND GOT INPUT OUTPUT ERRORS PRETTY FAR INTO THE DISC.

SafeMode... Nope

System Restore manually... No change

Set system to not reboot on failure and see a error relating to session manager.

"Stop: c000021a {Fatal System Error}
The Session manager initialization system process
terminated unexpectedly with a status of
0xc000026c (0x00000000 0x00000000).
The system has been shut down."

I have even tried chkdsk /r... No Help

Enter F8 Repair Windows... fails 40 mins later.

any insight???

BTW.. all data is on the drive.
dd_rescue reports a whopping missing 59k. (Of 80Gigs right at about 68Gigs)