Failed restore - HELP

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Just had a call from my dad saying one of his employees crashed one of the servers by rebooting it using reset button when it froze - unfortunatly in doing this windows has "forgotten" all of the settings, user preferences and installed programs.

As a first port of call they tried a systemrestore however this failed,so they tried an older one and this failed too.

What is the next port of call? Is it re-install time, will it workif we run the repair utility from the XP cd or is there another way of getting the system back up and running without such drastic and long winded methods?
 
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