I am haveing the same issue. I Installed new updates for My ATI AIW PCI-Express X600 (multimedia center, and catalyst 6.5??) Then I started getting this error (windows not booting). When I go to boot in Safe mode, the last file it loads is Btkrnl.sys under neath that, it says "press ESC if you don't want to load Vax347b.sys" and then goes away after 3-5 seconds and then the system just hangs and eventually re-boots.
What does this mean and what can I do?? The repair install that is listed above?