If you are building a new system with XP SP3 and try to restore data from a system that was using an old version on windows XP you will get this error:
You can get around the problem by using the files and settings transfer wizard from Windows XP CD without service pack 3. Or you can copy the file and settings transfer wizard from the old machine to a network location and launch it from there.
Check this post on how to do that http://helpdeskgeek.com/index.php/file-and-settings-transfer-wizard
This saved me! I got a free PC from someone and backed up using FASTW onto my flash drive before reformatting the HDD. They asked for their contacts lists and I tried to restore and got this error. THANKS!!!