How stupid it makes me look - talking about my over-confidence!!
I was trying to do all kinds of crap in trying to modify the faulty c:\boot.ini.. I was trying to mount the NTFS partition as read-write and I was today trying to boot windows from within Linux (using Qemu). I think I was thinking too complicated.
It just struck me as to why not I try this simple thing - Try booting from my Windows XP CD and get into recovery mode.. if there is one. To my surprise there was a recovery mode which just gave a command prompt. I just replaced my faulty boot.ini with the original backup. And thats it.. I am done!!
I had my windows boot as normal as before. :)
But it I learnt a great deal from the whole experience.. about mounting NTFS partitions and about loading Windows from within Linux.