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Sounds like trouble with her account, specifically the registry. Probably the easiest and most efficient route would be to delete her account from that machine using Microsoft's delprof tool (Google for "delprof" and the first Microsoft link will take you to the download location). Of course, don't forget to make a backup of her personal files because you will need to restore them after she logs back in.

I would think it is a corrupted profile. Log onto the pc in question as admin and delete it but move or save whatever first, then have her resign on and all should be well.

1017L = ERROR_NOT_REGISTRY_FILE

From microsoft The system attempted to load or restore a file into the registry, and the specified file is not in the format of a registry file.

I belive you will need to delete the profile on the w2k machine and then recreate it. Since it works on the w2k machine it sounds like it is not the network profile but the local one.

This problem also happens when trying to load a policy into the registry editor instead of with poledit.exe.

yes, the symptom of her having the problem only on that machine sounds like the registry, which is contained in the profile...
you could try running chkdks just to see if file system problems and check for plenty of free free hard drive space while you are there making her a new profile.
here is how i would do it:
login to that machine with administrator account.
create new user account. put in security group of choice, such as Power User
login as that user. new profle gets created.
logout as that new user and back in as admin
go to System Properties/User Profles and copy the old profile into the new. i don't think this will clobber the fresh profile with the registry error...

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