POSSIBLE CORRUPTED C: DRIVE PROMPT...

Well, since you ran a defrag, the most likely scenario is that while moving a file a bad cluster was encountered.

If Windows does boot normally and runs properly, I would not be overly concerned.

I do recommend that you go ahead and run chkdsk.

You run chkdsk from the command prompt. Use the command chkdsk /f in order to allow chkdsk to repair errors.

Chkdsk will be able to perform the most thorough repair if you run it from DOS mode at startup.

When Windows starts to load, press the F* key to bring up the boot option and select command prompt.

Search the Help and Support link on the start menu for chkdsk for full details on how to use chkdsk.

Now, the most important thing for you to do is to get religion on backing up your files. The fact that you have had a disk file error is a warning that your hard drive might be starting to fail.

If you start to have file errors or see any more disk warnings, it is a good idea to replace your hard drive before it fails.

Now would be a good time to make sure that you know where your recovery disks, device drivers, and software keys are.

Chas

If XP is corrupted to the point where none of the previous solutions get it to boot,
you can do a Repair Install that might work as well as keep the current settings.
Make sure you have your valid WindowsXP key.
The whole process takes about half an hour depending on your computer
If you are being prompted for the administrator's password, you need to choose the 2nd repair option, not the first.
1.Insert and boot from your WindowsXP CD
2.At the second R=Repair option, press the R key
3.This will start the repair
4.Press F8 for I Agree at the Licensing Agreement
5.Press R when the directory where WindowsXP is installed is shown. Typically this is C:\WINDOWS
6.It will then check the C: drive and start copying files
7.It will automatically reboot when needed. Keep the CD in the drive.
8.You will then see the graphic part of the repair that is like during a normal install of XP (Collecting Information, Dynamic Update, Preparing Installation, Installing Windows, Finalizing Installation)
9.When prompted, click on the Next button
10.When prompted, enter your XP key
11.Normally you will want to keep the same Workgroup or Domain name
12.The computer will reboot
13.Then you will have the same screens as a normal XP Install
14.Activate if you want (usually a good idea)
15.Register if you want (but not necessary)
16.Finish
17.At this point you should be able to log in with any existing accounts.
Hope this helps you out.

Please post back if you have anymore problems or questions.