Sometimes you have to scan the drive for installations as a separate operation. I hope that's all that's keeping RC from finding your Windows installation.
At the Recovery Console prompt, type
bootcfg /scan and press "Enter".
Does it list your Windows installation? If yes, type
bootcfg /rebuild and press "Enter". When asked if you want to "Add installation to boot list?", type
Y and press "Enter" For the Load Identifier, type
Microsoft Windows XP Professional and press "Enter". For the Load Options, type
/fastdetect and press "Enter". Type
exit and press "Enter".
If you were able to do that, you will be offered a choice when the machine boots. Try the top option first, if Windows doesn't start, try the other. One of them is the standard load instructions...the other is the one you modified. If you are able to get to Windows, you will be able to edit the boot.ini to remove the 3G switch...which is not helping you anyway.
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If you are unable to do any of that, enter the BIOS Setup (usually by pressing either F1 of Delete) and set the BIOS Fail Safe Defaults if there's a setting, or press F5 and see if it offers to give you BIOS defaults. You will have to set your boot priority again once you do this...don't forget to save the settings (F10) when you exit Setup.
See if the machine will boot normally.
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If still no joy, see if you can run this
REPAIR to your installation of XP. This procedure will not damage or change your current files or settings...it will just repair or replace damaged system files. You will be asked for your Installation CD and may be asked for your product key.
Follow the instructions carefully...print them out if you can. Note: This option is not always available on OEM Recovery Cd'sOnce this repair has completed, you will have to download all Windows Updates again.++++
If still no joy, we have only a couple options left...one of which will require a floppy drive. Do you have one installed on that machine?