Here's what I did
I've ran into the same problem. Stop error on boot or sometimes freeze on boot selection menu (Windows text mode). Eventually I have booted to safe mode and edited my boot.ini file (in the root directory - c:\boot.ini). There are two options that cause non-standard kernel to load when you select the default option and you have to delete them. I have now the following:
Code:
[boot loader]
timeout=30
default=multi(0)disk(0)rdisk(0)partition(3)\WINDOWS
[operating systems]
multi(0)disk(0)rdisk(0)partition(3)\WINDOWS="Microsoft Windows XP Professional" /noexecute=optin /fastdetect
Save and reboot.
Cheers
Jan