W2K3 Server Lost Desktop

My W2K3 server boots up fine except for one small problem – you cannot see the desktop. It is one large gray screen. I can access the drives from another PC, so I know it has booted ok. If I access it through term services, I get the gray screen. I received an error, “Registry hive (file): SOFTWARE was corrupted and it has been recovered. Some data might have been lost.” I ran the recovery console and did a chkdsk /r. This did not correct the problem. I hope someone can help, as I really do not want to reload. Thanks!