vxd problem in win 98

This is a good one. This particular machine creates vxd files in the same folder as an install .exe file(with a new program installation). The initial executable is stripped from whatever size it was down to just a few kb, and if removed from the folder, will perform an illegal operation when dble clicked. I feel that it is a memory or temp. files problem, but so far I cannot fix.It’s annoying!