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Manually create Setup folders during Windows XP upgrade

You may receive a Setup folder error message when you try to upgrade from Windows 98 or Windows Millennium Edition to Windows XP. This tip explains how to fix this.

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When you try to upgrade your computer from Windows 98 or Windows Millennium Edition to Windows XP, you may receive the following error message:
"Setup cannot create a temporary folder. Setup cannot continue."

To resolve this issue, use the following methods in the following order. If method 1 does not resolve the issue, then use method 2.

Method 1: Manually create Setup folders
1. On the desktop, double-click My Computer, and then double-click drive C.
2. On the File menu, point to New, and then click Folder.
3. Type $win_nt$.~bt to name the folder.
4. On the File menu, point to New, and then click Folder.
5. Type user~tmp. to name the folder.
6. Double-click the Windows folder. Click Show Files to display the contents of the Windows folder.
7. If there is a Setup folder in the Windows folder, right-click the Setup folder, click Rename and then type Setup-old to rename the Setup folder.
8. On the File menu, point to New and then click Folder.
9. Type Setup to name the folder.
10. Try to install Windows XP.

Method 2: Copy installation files to your hard disk
1. Insert the Windows XP Setup CD in your CD drive.
2. On the Welcome to Microsoft Windows XP screen, in the "What do you want to do box," click Perform additional tasks.
3. Click Browse this CD.
4. Right-click I386 and then click Copy.
5. On the desktop, double-click My Computer and then double-click drive C. 6. On the Edit menu, click Paste.
7. Click Start and then click Run.
8. Use Safe mode to start your computer:a. Restart your computer. b. As your computer starts, press the F8 key repeatedly to access the Microsoft Windows Startup Menu.
c. Type 3 to choose Safe mode from the startup options, and then press ENTER.
9. When Windows starts, type the following command, and then press ENTER: c: \i386\winnt32.exe /checkupgradeonly.
10. After the Microsoft Windows Upgrade Advisor finishes, view the upgrade report and take whatever action is required to address any reported hardware or software compatibility issues. See the "References" section for information about compatibility issues.
11. Start Windows.
12. Click Start, and then click Run.
13. In the Open box, type the following command, and then press ENTER: C: \i386\winnt32.exe
14. Click OK, and then follow the steps in the Windows Setup Wizard to upgrade the computer to Windows XP.

John Gormly is a regional technology directorfor a leading public accounting firm, a position he has held for the last 15 years. He is responsible for all aspects of technology, including PC support, LAN/WAN infrastructure, telecommunications, project management, training, IT deployments and personnel management.

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