windows hangs on hotcore3.sys

Hi I am having problems with windows loading. I have xp sp3. I previously restored this drive from an image using paragon backup about 3 weeks ago. Never had a problem since until today. While working I got BSOD and then the computer quickly rebooted. I was unable to note the BSOD error. Now windows won't boot, when I try to boot into safe mode it hangs on hotcore3.sys. So I went into the recovery console and deleted hotcore3.sys as well as disabling the service at startup. Still wouldn't boot. So I created a paragon recovery cd and ran the "update mbr" to rewrite the mbr. Still hangs. I am frustrated. What should I do BESIDES wiping the whole drive and starting over? Thanks, John

 

@johnpolakow

Important!
First of all, please backup your current system state from Paragon Recovery CD (Linux-based or WinPE-based)

Then:

Boot into Recovery Mode

1 Insert the Windows CD into the CD drive and reboot the PC. Watch the boot process carefully.
2 Press "R" when you see "Welcome to Setup" appear on the screen. Windows will prompt you for a password.
3 Type the administrator password if you have one. Otherwise, leave it blank.
4 Press "Enter" to display the Windows command line.

Edit the Registry

1 Type "Reg /?" without the quotation marks to view a list of available registry commands. These commands include "Add," "Delete," "Query," "Copy" and "Save."
2 Type "Reg /? Delete /?" without the quotation marks and press "Enter." Windows will list the syntax of the "Delete" command.
3 Type "REG DELETE HKLM\SYSTEM\CurrentControlSet\Control\Class\{71A27CDD-812A-11D0-BEC7-08002BE2092F}\UpperFilters /v hotcore3" without the quotation marks and press "Enter."

Type "Exit" when you are done, and press "Enter" to close the recovery console.