System restore problem

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I recently posted about a long boot problem, and now that I've got it resolved, I tried saving my current OS state using system restore. I clicked My computer and system restore tab, and got a "Run a DLL as an App has encountered a problem and needs to close. We are sorry for the inconvenience.". Details says: AppName rundll32.exe, modName srrstr.dll has a problem. Can you help? Thanks.
 
Option #1

Start-->Run-->Regedit

Go to:

HKEY_LOCAL_MACHINE
SOFTWARE
Microsoft
WindowsNT
CurrentVersion
SystemRestore

If a "DisableSR" value doesn't exist, go to the Edit menu, select New, DWORD value, and create the value.
Set the value to 1 to disable System Restore or 0 to enable System Restore.

Option #2

1. In My Computer, click the Tools menu -> Folder Options.
2. On the View tab, make sure to check the option "Hide extensions for known file types".
3. Click OK.
4. Click the Start menu -> Run. Type: " %windir%\inf " (Without quotation marks) in the Open field. Click OK.
5. Locate and select the file " sr.inf ". Right-click it and then click Install.

Option #3

http://www.kellys-korner-xp.com/regs_edits/sysrestoreenable.reg
From the reliable Kellys Korner site
 
oops,
and got a "Run a DLL as an App has encountered a problem and needs to close.
RunDLL has the error, not System Restore.

boot into Safe Mode and run SFC /SCANNOW to fix permissions
 
All, I've tried your suggestions to no avail. My registry already has disableSR = 0, and I've gone into safe mode and ran both "chkdsk -F", as well as "sfc /scannow". Still has the same problem. BTW, Dr Watson also reported an error after I close the runDLL error window.
 
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