Go to Google and enter PROCESS1_INITIALIZATION_FAILED
Lots of hits. SHould be something there that will help.
My guess is you have corrupted/missing boot files or a file system error.
Boot your XP CD, go to Recovery Console.
enter chkdsk c: /r to fix and file system problems.
If it still fails then try booting to Last known good configuration.
If still no go then do a Repair install (see link below).