Just to confirm the easiest solution on thie thread , by Brandon. I have a ATA and SATA drives on my Dell SC400 with winXP OS. On an attempt to copy the C drive to a new drive, I too got into the constant boot to PC dos and unable to recover by selecting the return to windows option or any of the tools. Ghdisk also hangs.
Anyway, disconnecting the SATA drive, and rebooting caused it to proceed. In my case I didn't want to take chances with my data today, so I was simply happy when the option to Cancel and return to Windows let it complete and return me to the beautiful Loading Windows XP screen.

BTW, at work they have the latest version of Ghost, I think its 11 or so, that works well even with Win 7 / Win Server 2008 R2. Its time to dump Ghost 2003.