Lsass.exe fails, registry files location

JimmyFats

Distinguished
Mar 21, 2010
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18,510
Hello,
My situation:
XP Home SP3.
Partition Commander Pro installed.
Personal laptop.
Password protected to startup.
Caught a f*cked up spyware.
Dealt with this kind of spyware before so I know how to get rid of it. Turned off computer booted to safe mode to do a search of the spyware for it's location. Upon booting I now get "Lsas.exe failed to initialize properly, click OK to terminate the program."
Click OK and that is as far as the machine will boot, with a black screen and the movable mouse cursor.
After searching for fix cannot find one except complete wipe of XP.
Finding this is a registry error, through Partition Commander I am able to access the files on the machine.
I found a earlier copy of the "System32" folder from a previous hard drive crash.
When replacing this old system32 folder for the current one, the computer will boot and run with previous settings. I no longer have any of my desktop icons and current programs do not run.
How can I repair the Registry entry through windows explorer to the current System32 folder to "repair" the registry for my current settings?
Is there a way to remove the registry entry "tricking" the computer into thinking it does not require a password to boot?