Faced similar problem at our installation...problem was caused when the SP4 update stalled. This leaves a large number of support files laying around which usually are removed when the installation finishes normally. Part of this residue is a directory on the root of C: that gets a unique name, and includes a $shtdwn$.req file, which appears to be part of why a failed installation causes the machine to cycle the re-boot.
After a lot of trial and error, we found a solution that prevented us from needing to completely rebuild our clients.
First, find a WIN2K installation CD. We used the Green Dell CD that came with our systems. Then find a client that has successfully completed the SP4 install process, and copy the
C:\WINNT\SYSTEM32\winsrv.dll to a diskette.
Set the failing PC to boot from CD in the BIOS, and allow the WIN2K CD to boot the system.
When the menu appears, select 'R' to Repair, and then 'C' to run recovery console.
Enter '1' to select the OS on C:\WINNT, and enter the Local Administrator Password when prompted.
A command prompt is given, and there is a limited set of DOS-style commands available. Enter 'HELP' and a full list of commands is given. Enter' /?' for any and its syntax and options are displayed.
Insert the Floppy and use the copy command to restore the winsrv dll:
'copy a:\winsrv.dll c:\winnt\system32\'
At the same 'C:winnt>' prompt, it may be necessary to run the SYSTEMROOT command, which re-establishes the proper value for this environment variable...just type SYSTEMROOT at the command prompt.
Now type 'exit' and the machine will re-boot.
Keep the CD in the drive, and let it reboot again from this CD. At the menu screen, enter 'R' for 'Repair', but this time enter 'R' again for Repair instead of 'C' as above.
Select 'M' for manual selection, and 'continue'.
When prompted to insert an emergency repair disk, enter 'L' to run with no disk. Then respond with 'Enter' to begin the repair process.
The CD will run and check out the file system, and then re-start. This process will need to be run one more time--let the CD reboot and run up to the menu screen as before.
Select 'R' {Repair}, 'R' {Repair}, 'M' {manual}, 'continue', 'L'{no disk}, and 'Enter' as above.
The CD will again begin to run and check files. This time it will begin to identify individual OS files that are suspect. Answer 'Enter' to return to previous levels.
It is possible at this point to answer with 'A' and all such files will be recovered.
After this process completes, allow the PC to re-boot, but remove the CD. The PC will now boot up on its own.
I was at first fearful what I might have on my hands when things re-started, because the CD indicates that these Operating System files are being returned to an original level...we had been up to SP3 on WIN2K and I was not sure what I would have.
I was extremely pleased to find that my PC rebooted flawlessly, and came up at its proper SP3 level.
We then re-installed SP4 and we were off and running again.
Good luck!
Mike Wagner
CSC Corp.
Great Lakes Naval Training Center