Win2000 won't install past certain point on existing drive

I have a drive with an existing Win2000 install on a D: drive of NTFS. There's a C: FAT boot drive.

During a failed disk access I quit being able to boot to Win2000. The OS Loader comes up with my choices; selecting Win2000 I get two dots (..) then a pause then the error "...the following file is missing or corrupt: <winnt root>\system32\hal.dll "

I presume that or other files got damaged. So I tried to boot to the win2k cd to do a repair install. No luck. It gets to the point where it says "loading windows 2000" then hangs. Some random disk access can sometimes be heard but that's it. ONCE I got to the point to select "R" for repair but then it hung. Only once did I get that far.

What is likely happening there? It's an older dual PII overdrive socket 8 motherboard. I removed all cards except the video and network cards. The MB recognizes the drive just fine and reports SMART is ok.

What could I do? I have other concerns with this system but I need to figure out why this won't install / repair.

 

Oh - forgot to mention it also says 'I/O error: Status = 00001020'.

Any idea what that means?