I've seen this a number of times.  In most cases, the problem turned out
to be bad RAM, creating an error while reading the registry to memory.
It may in fact turn out to be something else, but before you start over
from scratch, Try this:

If you have multiple RAM sticks in the machine, try removing one at a
time and see if the problem goes away.

Best of luck,

Lloyd Hanson

> Warning: Windows has detected a registry/configuration error. Choose
> Confirmation prompt only and run Scanreg.
>
> (Note; we tried to run this at this at the C: prompt and nothing
> happens)

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