Answer
This question was answered on May 8, 2005.
Much of the information contained herein may have changed since posting.
I researched your error message and found that it may have something to do with the Kernel. It may be that the kernel32.dll is missing or corrupt
1. Restart your computer. When you see the "Starting Windows 95" message, press the F8 key, and then choose Command Prompt Only from the Startup menu. If you are using Windows 98, restart your computer, press and hold down the CTRL key while your computer restarts until you see the Windows 98 Startup menu, and then choose Command Prompt Only. If you are using Windows Millennium Edition (Me), start your computer with the Windows Me startup disk.
2. Type the following commands, pressing ENTER after each line:
cd\windows\system
ren kernel32.dll kernel32.xxx
3. Extract a new copy of the Kernel32.dll file from your original Windows disks or CD-ROM to the Windows\System folder. For information about using the Extract tool, type extract at the command prompt, or see the following article in the Microsoft Knowledge Base:
4. Restart your computer.
Reference: www.microsoft.com