I have figured out what was the problem. More problems turned up but debugged them all. You really need DOS knowledge to fix this.
NOTE: I had a Dell Inspiron 600M with Windows XP Home Edition. People who have this may encounter similar problems to mine.
Problems and fixes along the way: using microsoft knowledge base fix 307545Step One)
1) 'File can not be copied' error when "copy C:\windows\tsystem32\config\system to a tmp file"
I just 'rename' all the files as recomended by Charles White's fix addendum to have extension .kpp, since the purpose is to save backup copies of the registers. The problem is that the file has a different file extension name. See link below for Charles White fix article for renaminghttp://webcast.broadcastnewsroom.com/artic...cle.jsp?id=8658
2) File not found when copying c:\windows\repair\system
Use DOS command 'DIR /windows/repair', I saw that the system file has an file extension of .bak
so I retyped the command as
copy c:\windows\repair\system.bak c:\windows\system32\config\systemStep Two)
1) When I logon on as Admin, and click TOOL, there was no Folder options on drop down.
I have to find this Folder options by Clicking on START and using SEARCH function. The pop-up screen for this SEARCH will show you TOOL and it has the Folder options.
2) When Accessing System Information Folder, I keep getting Access Denied even when I have applied
the Microsoft knwledge base fix 309531. It did not work.
Right click on System Information; Go to Security; You only see 'System' (with two faces); Add Administrator to it. make sure you click all the permissions. This now allows authority for a user called Administrator which you logon as to access System Information.
Hope this helps others in the future. GOOD LUCK!