I have used options to change the paths, as follows: Windows to D:\Windows Program Files to F:\Program Files Temp to I:\ During initial process of Installation, Windows Setup stated that "Could not create folde \D:" in MS Virtual PC and even real time installation in a PC. Then Copied new WinXP Setup and used nLite on it with the above stated (same as old) preferences; then tried with in MS Virtual PC and recieved the Same Error. Then tried to find the line(s) wherever \D: is located, instead D:\ which is supposed to be; it's was available in TXTSETUP File as, [setupData] SetupSourcePath = "\" MajorVersion = 5 MinorVersion = 1 DefaultPath=\D:\WINDOWS I have changed the above to, [setupData] SetupSourcePath = "\" MajorVersion = 5 MinorVersion = 1 DefaultPath=D:\WINDOWS and Still the same error remains during installation on MS Virtual PC. I am a newbie, help me!!! LAST_SESSION.INI