vmouse.vxd won't load

I have a user who received an error, he doesn't
remember exactly what it said, while on the internet.
His mouse then froze and his video display went
bad,
16 color. Now when he reboots, the mouse doesn't
work and his display needs changed to 16 bit.
The device properties for the mouse (PS\2) has an error
that reads, Windows can't load the file (vmouse.vxd),
which loads drivers for that device. Run '98 setup
to fix.... He ran setup again and I've tried
reloading the drivers, but still get that error,
even when trying to use a serial mouse. Is there
anything else I can try?

Thanks
Dwain