This may not directly help, but it may send you in the correct direction...
A frinds of mine had the exact problem with Win 98, well after the update had been installed. MS help didn't solve the problem, but after lots of searching on the internet we found a fix.
We traced the problem to a security update (MS Jscript ver 5.X). We downloaded all the Jscript updates (not using Windows update) and re-installed all of them in version number order (some did not apply and would not install). That fixed the problem for him. I checked my XP machine and there is a Jscript update for Win XP.
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