32.vxd ?? Did you get the name right? Is it vmm32.vxd by chance?
Error Message: VMM32.VXD Is Required to Run Windows...Q194679
http://support.microsoft.com/?scid=kb;EN-US;Q194679
Saying you cannot install Windows is not helpful--tell why you cannot
install Windows.

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Regards
Ron Badour, MS MVP W98 System
Tips: http://home.satx.rr.com/badour
Knowledge Base Info:
http://support.microsoft.com/default.aspx?pr=kbinfo
> On startup, my computer goes to DOS and reads "32.vxd is
> required to run Windows. this file is not in your PATH,
> you may need to reinstall Windows."
> I've tried to reinstall windows but can't. I have both
> the Windows 98 cd rom and startup disk. Any thoughts?
> Thanks.