"NTLDR is Compressed press atl. ctrl. del to restart." When I restart it gives

Boot from the XP install CD, get to a recovery console (follow the prompts), change to the Windows root with "cd c:\" , then type "attrib -c ntldr", type "exit" and reboot...

1. Start the Recovery Console. If you do not have the Recovery Console installed, start it from the Windows XP compact disc (CD). To do this, follow these steps:

a. Insert the Windows XP CD and restart the computer. If prompted, select any options required to boot from the CD.

b. When the text-based part of Setup begins, follow the prompts; choose the repair or recover option by pressing R.

c. If you have a dual-boot or multiple-boot system, choose the installation that you need to access from the recovery console.

d. When prompted, type the Administrator password.

2. At the command prompt, type "cd \" (without the quotation marks), and then press ENTER.

3. Type "ren ntldr ntldr.old" (without the quotation marks), and then press ENTER.

4. Type "map" (without the quotation marks), and then press ENTER.

5. Note the drive letter assigned to the CD-ROM drive that contains the Windows XP CD. It is displayed in a format similar to the following: D: \Device\CdRom0

6. Type "expand <drive>\i386\ntldr._" (without the quotation marks) (where <drive> is the drive letter of the CD-ROM drive that contains the Windows XP CD), and then press ENTER. For example:

Expand d:\i386\ntldr._ <ENTER>

Note the underscore character after the "."

The following message appears: ntldr, 1 file(s) expanded.

7. Type "exit" (without the quotation marks). The computer restarts.

8. Remove the Windows XP CD and start the computer normally.

I don't have a Windows XP cd, and I tried my recovery disc, but that won't allow me to get to a command prompt.

time to get a XP installation disk

No destination specified for: d:\i386\ntldr ''_.

Help!!

Add your destination folder to the syntax.

Example:
Expand d:\i386\ntldr._c:\ntldr

I realize this is an old post but I have the answer. After doing a scan using Microsoft Security Essentials and restarting my PC I was stuck with the loop that Windows did not shut down properly and was given several choices such as starting with safe mode , safe mode w/ networking etc. Nothing worked but I was able to go into recovery by pressing f10 so I did a non destructive recovery then I ended up with the NTLDR is compressed press CTRL+ALT+DEL which was also a loop. What has happened is that my computer was set to compress to save space so when I did the recovery it came up with the error. I found the answer here (copy and paste in address bar) http://h10025.www1.hp.com/ewfrf/wc/document?lc=en&dlc=e... . To start the process press the CTRL+ALT+DEL and hit f10 , you have to do it fast, it may take a couple of tries but you should be able to get into the recovery mode. I did not have the recovery Cd's so the steps I used are at the bottom listed as alternative steps. Be sure to follow exactly as described. After its all done you will probably go through a registration process but your stuff should still be there. I also had to reinstall service pack 2 after doing a setup for updates. Be sure to do this as you may not be able to do certain things and it is also there for security purposes. I had to do this also to reinstall Microsoft Security Essentials. Microsoft is now giving us free anti spy ware so its best to get it on your PC ASAP. After all this is why I got into the mess in the first place because of some virus and bad ware on my PC. Your PC is not safe without it, especially if you like to surf the net. Good luck!!  

For the benefit of those searching for the answer to this problem, MrLinux's answer is the correct one. Thanks MrLinux!