i dont't think tat u can do anything bout it as a system folder is missing...u better put in ur windows installation disk (if u have it) and type "r" after the cd boots to repair ur windows installation..
Insert WIN INSTALL DISK, choose install (press install 4 a new install). After it searches for old installation of windows, press R. Setup will check for HDD errors, system errors, etc. and correct them accordingly.
i was fed up and then decided to reinstall the OS so i put the disk and where it asked to select the drive i gave the same drive where OS was present then i continued by this option 'Leave the current file system intact(no change)' and it tried to recover my disk and told to restart the PC , i did it and Voila!!!!