after a little more thinking:
Considering what happened to your Radeon drivers after sfc scan, and that you have additional driver errors registered in logs, it is safe to assume that drivers on your system are a mess now. In case we go on with troubleshooting, in one of the following steps I will ask you to uninstall some software that comes with drivers, then clean up AMD drivers, then reinstall all drivers for all your non-generic devices, and for the chipset. That is not much unlike performing a fresh installation but with lower chances of defeating the problem. Moreover, chances are that even with a vanilla WinXP disk, we won't be able to restore sfc function - which means that your OS will remain lacking the self-repairing facility which is the sfc.
With that in mind, my best advice would be to stop here, get an untouched WinXP or Win7 disk, back up your data, reformat the OS drive and install from scratch. If you are going to install Win7, I have a few tips for you.
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