I not sure if this will help in you case but on my home pc wk2 I installed SP3 and got the above error. I looked at the MS newsgroups and at MSKB which was useless, basicly said this error was resolved by sp3. I have also post the same question hereon techrepublic and did'nt get any great answers. After trying to repair from last known good config... etc. with out success, I resigned myself to rebuilding my system but then I tried a differnt approch and this worked.
This is a bit long winded but should help. Firstly you need to have a win2k upgrade disk. Boot from CD, you will then be asked if you want to install new, or repair Win2k. Choose install new. The next screen will then inform you it's looking for a previous version of windows. It will then find you current w2k and ask again if you want to repair or install fresh. This time choose repair. Wk2 will then reinstall a few exe and dll files. When it's finished w2k will come back up. You may get a problem with the logon causing the system to reboot. This can be repaired by again booting from the cd into the recovery console and deleting winlogon.exe from your HD and extracting it again from the w2k cd. Then restarting you system, now you will have W2k up again with most applications still working. The only one I had trouble with was Outlook 2000 so just have the MS office cd handy just in case. Otherwise 100%, oh and before you ask, yes I have tried this on my PC last night to recover from a SP3 wonder.
Don't know who is you HD maker but a couple of articals on the web which give some insteresting information about HD's and W2k.
http://support.microsoft.com/default.aspx?scid=kb;en-us;260233
http://www.microsoft.com/downloads/details.aspx?displaylang=en&FamilyID=C0C6F84A-60C2-40D7-BE49-A7BDD685B08E
Hope this helps.
