You didn't indicate what version of Windows you have, so I will assume it is at least Win 98. It sounds like the PNIE.DLL file just MAY be corrupt. (Not etched in stone--this also could be a memory conflict, which I or another contributor can help you with later, if necessary. However, we would need to know the full errror message in that case).
Try going into Start > Programs > Accessories > System Tools > System Information. In the "Tools" menu there, select "System File Checker." You can do one of two things there: You can run the File Checker in full to find corrupt files, or you can use the "Extract" feature. It might be a good idea to go ahead and run the full show the first time around. If it didn't detect that file, then you can run the "Extract." When it asks where to find that file, you will direct it to either the C:\WINDOWS\OPTIONS folder or to your installation CD in the Win98 folder.
Hope this helps. If you need further explication, just repost it for us.
Make it a nice day! ;-)
Butch
"It's what you learn after you know it all that counts"