Winows ME Shut down

I have windows ME on my doughters computer and it worked fine until recently. Now when you try select shutdown it will either hang or restart. If I use msconfig and take out the NDIS.VXD vertual devise driver it shut down properly. I renamed it in the windows system folder so that it would recreate it and it still has the same problem. Also romoved and reinstalled all of the communactions from setup and then done another complete windows setup. Same problem Can anybody help me without going to the extreme of formatting the drive?