I tried safe mode, same result
After reading similiar threads in the forums, I tried the following
c:\windows\system32 copy userinit.exe wsaupdater.exe I received the notice that it was copied, same result. system will not log in
After further reading I found many people had success with booting up with windows xp cd then going to the recovery console and using this.
expand d:\i386\userinit.ex_ c:\windows\system32
this did not do anything for me. Actually when running the recovery console from the cd the computer was unable to find anything on my c drive. However, I have seen that since service pack 3 I think, that the recovery console comes up evertyime I normally boot up. So I booted as normal, but chose the console instead of windows xp. I was able to go ahead and use
expand d:\i386\userinit.ex_ c:\windows\system32 It worked, I gave ok to override restarted and still get the logon logoff loop.
Any advise would be appreciated.