Method 1 assumes that the files is there and the boot.ini is pointing to the wrong directory.
So what you do is start windows with the boot disk
Then go to c:\ open up the boot.ini file
the [Operating System] should look something like this:
multi(0)disk(0)rdisk(0)partition(1)\WINNT="Microso ft Windows 2000 Professional" /fastdetect
Note: the partition can change if you have more than one partition of the c: drive, also this may be different if you're not running Windows 2000 professional... I don't have a non-pro machine to test sorry.
AMD Athlon 64 3000+ (Overclocked to 3300+)
1GB PC3200 DDR
2x200GB Seagate SATA RAID 0
BFG 6800GT OC w\\128MB Ram
2x 19\" Samsung 930B LCDs