Dan's message is probably your best suggestion to resolve the "Too many files open" error. We encountered it on many but not all WinMe workstations immediately after switching from a Novell 5 server to a Windows 2000 server. (Hmmm, is this a hint from Microsoft not to run DOS anymore? Or just not to run serious business applications on WinMe?)
Why? Microsoft Knowledge Base Article # 269030 says...
With WinMe and DOS, FILES and BUFFERS settings do not function. Instead of Files, use PerVMFiles setting. This setting increases the number of available file handles in each MS-DOS virtual machine (VM) and is implemented by adding the following line to the [386Enh] section of the System.ini file: PerVMFiles=number
In Windows Me, each MS-DOS VM is given the default FILES value of 30 file handles. The maximum number of file handles a VM can have is 255. Because the total number of file handles cannot exceed 255, the maximum PerVMFiles setting is 225. This value, plus the 30 made available by default, equals the maximum total of 255. You must restart Windows Me after the change.
Both the Files= and Buffers= statements in the Config.sys file are ONLY used when starting your computer with a WinMe Startup Disk that includes a Config.sys with these settings. If your DOS program does not run in Windows because it needs a Files or Buffers setting in the Config.sys file, then you may be able to start your computer with a WinMe Startup Disk that includes these settings and run the program in Real mode.
Step by step the easy way:
From Start/Run, type MSCONFIG.
Select the SYSTEM.INI tab.
Highlight the [386Enh] group.
(Click on the + to see the items in this group.)
Add this line (or edit if there):
PerVMFiles = 225
Note: You may not need to go as high as 225.
The maximum value is 225 (plus 30 already allocated).
Click Apply or OK when finished.
When finished, Windows will want to ReStart.
(I prefer saying No and then doing a ShutDown.)