ntfs.sys points towards the hard drive being corrupted. A format and reinstall should fix this, unless the drive is making any irregular noises (if it has, it has failed or is failing)
No point in formatting, there is a work around.
If you have a system that is already running a copy of Windows on FAT format (MUST be FAT, can not be NTFS), go to Windws\System\Drivers and change NTSF.sys to NTSF.old
Shut down and put the other, non-working drive in as a slave and boot normally. the "broken" drive will have another letter, most probably E:\ if you don't have any other drives or partitions. Find out which letter it is. Open up command prompt (Start>All Programs>Accessories>Command Prompt) and type in:
With E being whatever drive letter your bad drive is
Follow everything else on screen, it will scan your drive, and shouldn't BSOD when you do this time, and fix any errors. Back up what you need to incase it happens again, then you can change NTSF.old back to NTSF.sys and put your drives back into the correct computers and everything should work.
You can also try using ntfsfix utility inside Knoppix, which is a Linux based operating system.
Instructions on how to get Knoppix are here:
http://www.knoppix.net/get.php
you just burn the .ISO image that gets downloaded to a CD and then boot from the CD in your failed computer.
Once in, click the terminal button at the bottom of the screen, and type into the new window:
and hit enter. Then type in:
and again, hit enter. Make note of all partitions that have NTFS file system, they will be in the format hda# where # represents a number, for example, hda1. Hit the Q key
Type into the console window:
where # is the number of the partition. Do it for every one which has NTFS file system. If everything goes well, Knoppix will say "Ok"
Close the shell terminal, right click the desktop and click log off. Take the disc out and reboot from your hard drive. If the fix was sucessful, Windows will boot, which may take a good while longer than usual the first time, but should work, just leave it running until it boots up