Invalid boot file loading from c:\windows

So I get that message right after the mobo splash screen, then Windows will load like normal.

The boot.ini is as follows:
[boot loader]
timeout=30
default=multi(0)disk(0)rdisk(1)partition(1)\WINDOWS
[operating systems]
multi(0)disk(0)rdisk(1)partition(1)\WINDOWS="Microsoft Windows XP Professional" /noexecute=optin /fastdetect

Going into msconfig I click the Check all boot paths and it tells me that the last line does not refer to a valid operating system and it asks me if I would like to remove it.

I am on Win XP Pro and my local disk is D: and C: is a storage drive. What should I do, thanks for your help.