Every time I try to install a new update I get the following error when
I reboot (this is in the DOS screen before windows starts):
Windows could not upgrade the file %1 to %2

I ran some Google searches and found the following Microsoft document:
http://support.microsoft.com/default.aspx?scid=kb;EN-US;q283069

I did what it said, but it doesn't work. The wininit.ini file seems to
be created/deleted when the new program is installed. (i.e. Before I
install the update, it doesn't exist. The installation creates it, and
after the computer reboots the file gets deleted.) I ran some tests and
found the it contained directives to rename files before windows
restarts (I'm assuming it's because the files are in use and can't be
renamed while windows is running). Looks something like this:

[Rename]
c:\program~1\nortona~1\crap.dll=c:\program~1\nortona~1\crap.d~

And that's where I'm at. I'm starting to wonder if the wininit.exe file
was infected with a virus and when Norton fixed it it corrupted the
program. Could you do some research to either validate or refute this
conclusion? Also, if you arrive at the same conclusion, could you do
some further research on how I could fix or restore this executable
(perhaps restore from the original windows me disk)?