Win XP pro fails to start up.

I have a PC running Win XP pro which boots up and gets to the XP logo, after
the XP logo I get a mouse pointer then start up just appears to stop and I am
left with a black screen with a single mouse pointer.

Have checked out the hdd on a seperate PC using chkdsk and all appears to be
OK.
The HDD has 2 partitions, one C:\ for Windows and D:\ for storage.
If I boot from XP disk and go to recovery console then partition 1 shows up
as D:\windows and partition 2 shows up as C:\ storage.

If I try and repair XP then Windows files are deleted and replaced, then PC
reboots and stops at the same place.

Have tried fix mbrand fix boot with no success.
All windows and boot files appear to be there.

Any suggestions?

Thanks

Neil