I plagarized all of the following info from Lavasofthelp.com. It worked for me. An XP disk was required; DOS programs did not access the necessary directories. I think anybody's XP disk will work; the license key was not needed.
Insert the Windows XP startup disk into the floppy disk drive, or insert the Windows XP CD-ROM into the CD-ROM drive, and then restart the computer.
During bootup, if you are asked whether to start from the CD-ROM or the hard drive, choose CD-ROM.
When the "Welcome to Setup" screen appears, press R to start the Recovery Console.
If you have a dual-boot or multiple-boot computer, select the installation that you want to access from the Recovery Console.
When you are prompted to do so, type the Administrator password. If the administrator password is blank (which is likely the case if Windows XP was preinstalled by your computer manufacturer), just press ENTER.
You should now be in the Windows installation folder. Note this location, as it will be necessary for steps later in this article.
At the Recovery Console command prompt, type the following lines, pressing ENTER after you type each line:
cd system32
copy userinit.exe wsaupdater.exe
Now that a file named wsaupdater.exe exists, remove the startup floppy or CD-ROM from your system, and boot into Windows XP. Log on to the system using an account with administrator-level privileges, and edit the registry using this information.
In Windows, click the Start button in the lower left corner, and choose "Run".
For Run, enter:
regedit
and click OK. Using RegEdit, expand
HKEY_LOCAL_MACHINE
->Software
->Microsoft
->Windows NT
->CurrentVersion
->Winlogon
With Winlogon chosen, in the right frame, scroll down and locate Userinit in the Name column, right-click this item, and choose modify. Replace
"wsaupdater.exe" with
"userinit.exe,"
(do not use quotes, and ensure the TRAILING COMMA is present as shown) and click OK. Exit RegEdit.
Restart your computer, and log on to the system using an account with administrator-level privileges.
Go to My Computer, then to the System32 folder (usually C:, then Windows, then System32). If Explorer prompts that removing files from these areas is not recommended, click to continue. Locate and remove wsaupdater.exe, and delete this file.