Start the pc with the WinME CD.
at the C: prompt type
cd\windows\command (press Enter)
at the prompt now type:
scanreg /restore (press enter)

You shall see a list of previously loaded .CAB files (reg files)
Anyfile which says started------- (some date is good.)

Select a date before the problem started and select it and restore it.
Restart the pc and BINGO! as good as new!