Review the contents of your Autoexec.nt and config.nt in your \Windows\system32 (or \WINNT\system32) folder.
There has been at least one case of some install of a 16-bit program, which updated the path statement in Autoexec.nt , making the path too large, and thereafter causing issues.
Review these files in any case.
(to be sure to see all folders)
Check the Windows Explorer "View" options --- set it to show you all folders; all system folders; & hidden files.
Bring up Windows Explorer / Tools / Folder Options/ select VIEW Tab and look at all of settings listed.
"CHECK" (turn on) Display the contents of system folders.
Under column, Hidden files and folders----choose ( *select* ) Show hidden files and folders.
Next, un-check Hide extensions for known file types.
Next un-check Hide protected operating system files.
Be sure to get the full message displayed about the NTVDM
See
http://support.microsoft.com/KB/156687
Entries in Config.nt or Autoexec.nt May Cause NTVDM Errors
Lastly, turn off CAPS lock when posting. Using all CAPS is considered SHOUTING !