Win XP restore disk, pulling my hair out!

Hi,

My PC is a pre-used e-Machines PC with Win XP bought 2 years ago from my local computer repair shop which has since closed down.
Three weeks ago it refused to boot and since then I have been trying everything I know to repair it to no avail. It displays a message saying \WINDOWS\SYSTEM32\CONFIG\SYSTEM is missing or corrupt, thus I have been using the restore disk which came with the PC. I am sure the disk was made with a version of Ghost but whether Norton or Symantec I don't know. I have now reached the end of my tether trying to get the disk to work including re-assigning the Bios to start with the DVD RW player but still receive the same error message.

On the restore disk is a folder named ghost 001 and within the folder are two files:
#1.  CDR00001.gho (1 Gbytes)  
#2.  CDR00002.gho (0.5Gbytes)

As a test I downloaded a free copy of Norton Ghost Explorer and successfully opened a copy of CDR00001.gho which I had transferred to my wifes laptop, the opened contents were clearly parts of Win XP operating system. Unfortunately for some reason Ghost Explorer won't open the #2 file CDR00002.gho.
In desperation I even tried burning a CD with the contents of CDR00001.gho in some vain hope it contained the setup files for Win XP and would boot the PC, no such luck!
I am an older guy on a pension and really can't afford to take my PC to yet another repair shop, or buy another OS, so if anyone has knowledge in this area please give me some ideas. BTW plain English please, no geek language as I simply don't understand it, thank you.