system32 is an essential part of Windows. Windows may not even start if it's missing. It's the folder that contains most of the working code of the OS.
If the folder is missing, then you need to reinstall windows.
Try to boot from a Linux Live CD and backup your datas before reinstalling.
Take a look to see if it's beed renamed somewho. If so, rename it back to the correct name.
It contains, among many others, the following subfolders:
CatRoot, config, DirectX, dllcache, drivers, DRM
It also should contains over 2000 files.
Electro
April 2011
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