Whst is the lsass.exe? It is the Local Security Authority SubSystem component of Microsoft Windows. Basically, all the security related mechanisms run in the context of the LSA.
The lsass.exe is not a virus, and it usually located at c:\windows\system32\lsass.exe. However, there is a few viruses that have been found to run as lsass.exe to hide from you:
W32.HLLW.Lovgate.C@mm - Symantec Corporation, W32.Mydoom.L@mm - Symantec Corporation, W32.Nimos.Worm - Symantec Corporation, W32.Sasser.E.Worm (Lsasss.exe) - McAfee With the sasser worm code count down you will see that the code given with that symptom is almost always -1073741819 (which for the record would be 0xC0000005 -a much more common failure code indicating an unrecoverable page fault).
This component can be removed or replaced by some virus, as result you can see lsass.exe error: unable to locate component on windows startup.
To restore the process you must to use installation CD of your windows. Boot from it and select repair.
This process is only exists in Microsoft Windows 2000 and XP, so if you see this process on your Win98 or Windows Millennium installation. You should have a suspicion that you have a virus.
Also there is a trojan named isass.exe, in default font i looks very similar to small l. This trojan is backdoor, after virus is installed in system it open the TCP port 3410 and listen for malefactor commands on it. This virus derived from Optix Pro trojan.
Be aware that virus can be masked as the same name but different directory, or use more similar names such as 1sass.exe, or lsas.exe or something close.