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You should be perfectly OK with a re-install of Windows, all your personal files will remain untouched and if they are in your "My Documents" folder they will be in the same place afterwards.
Just dont select any Format, Partitioning or File System change (NTFS/FAT32) when you are going through the process!
There is a way to repair the lsass error without doing a reinstall.
The simplest way is to remove the hard drive and place it in another machine.
Scan it for virus/worms just to be sure.
Open the System Volume Information folder on the drive containing the broken Windows.
Browse down to the next to newest folder and then to the snap shot that is as new as you trust.
In hear you will find a set of registry files that can be copied into the system32/config folder to replace the corrupted registry.
This can also be accoplished from a linux boot disk as well as (I think) from the repair console (if you know the password)
If further details are needed let me know.
looney-bin
Looney:
The thread is two weeks old, as witnessed by the flashing date in the header of each response..... His report is now way overdue.... ;)
While your response may be correct it is not very precise.... I'm pretty good with computers but I'm unsure as to where your instructions would lead..... Try to be precise. If you can, go through the process as you write it out so that you are sure you are giving accurate and intuitive information to the readers..... It'll make you more helpful to others.
I am still having the problem.... na Just kidding.....