Unlike Win 98SE, Win Me doesn't use real mode and therefore ignores any
entries such as files= that a user adds to config.sys since neither
config.sys or autoexec.bat are processed when Win Me boots and the files
are simply retained for backward compatibility with older applications
that expect to find these two files.

If you have a DOS application that requires more file handles rather than
using FILES= add the following line to the [386Enh] section of the
system.ini file:

PerVMFiles=<number>

Where <number> is the required number of additional file handles.  You
have thirty by default so try PerVMFiles=number required - 30 for a start.

See MS KB 269030 - "How to Increase Available File Handles for
MS-DOS-Based Applications in Windows Millennium Edition"
(http://support.microsoft.com?kbid=269030).

If however the program is a 16-bit Windows program see MS KB 274594
"16-Bit Programs Cannot Open More Than 120 Files Simultaneously in Windows
Me" (http://support.microsoft.com?kbid=274594).  Microsoft can supply on
request a new version of dosmgr.vxd to resolve this problem.  This should
be supplied free of cost if you mention 274594 and that you are using a 16
bit Windows program that requires more than 120 Files.

I need one more confirmation.
There is a requirement for an accounting software to make two entries.
a) files =110
b)buffers=35

Where to enter both of these ? Will the buffers also go under same location
that mike has suggested.

regds

Yasas