This may be more correct for HP install probs Compaq/HP Pavilion Windows 98SE Install Issues - VMM32.VXD... C:\WINDOWS\SYSTEM\VMM32.VXD: missing/unable to load and you cannot load Windows
a Pavilion 4440, but it was reported to me by readers that this also affects the 6350, 8140 and Compaq Presario 1245s.
After a completely clean FDISK and FORMAT of the hard drive in a working HP4440 PC, Windows installs without incident until the shutdown after you enter the Product Key. After this shutdown during the Win98SE installation process, Windows boots to a splash screen and then drops to DOS with the error:
C:\WINDOWS\SYSTEM\VMM32.VXD: missing/unable to load
and you cannot boot to Windows.
The system will then start up OK in safe mode, but will not be able to boot normally.
SOLUTION:
Why, yes, there did turn out to be a solution....
Some of this is actually in Microsoft's Knowledge Base:
1. After you get the error 'VMM32.VXD...' during install, boot the computer to safe mode by holding down F8 or Ctrl and select 'Safe Mode'
2. Click 'Start' > 'Run...' > type 'msconfig' and click 'Ok'
3. Click 'Autoexec.bat'
4. Click 'New'
5. In the box that comes up type 'PATH = C:\WINDOWS\' and press 'Enter'
6. Click 'New' again and type 'PATH = C:\WINDOWS\SYSTEM\' and press 'Enter'
7. Click 'Apply' and 'Ok'
link