Windows could not start because the following file is missing or corrupt:

Toshiba Laptop shut down due to lack of power while using the battery. When booting it up (a few minutes later) the following message appears: (brackets added)
[Windows could not start because the following file is missing or corrupt: \WINDOWS\SYSTEM 32\CONFIG\SYSTEM

You can attempt to repair this file by starting windows Setup using the original Setup CD-ROM. Select ‘r’ at the first screen to start repair.]

The startup cd (ver. 1,0,2,0) that came with the Toshiba Satellite A65 does not give a repair option. I can choose from
-Recovery of Pre-installed software
-Erase the hard disk

I don’t want to lose all my files so I hope there’s an easy fix. Any ideas?
System information:
Toshiba Satelite A65-S1067 Laptop
Windows XP sp2