Go into Sysedit again

This time check Win.ini and Autoexec.bat the same way you did for system.ini

Also check Start|programs|start up to see if there is any mention of any Norton there (won't cause the driver problems, but might be causing the directory problems)

The Directories won't be unnamed, but they will prob be named as a space. if this is the case typing deltree " " at the c:\windows\desktop> prompt should work

Cheers Al