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In attempting to diagnose a system restore problem, I was told to "check the events log in investigtive system restore service errors" from Start, Control Panel,Administrative Tools,Computer Management, Event Viewer,System, then Source to sort by name to evaluate the event description for indication of the cause of the problem. In doing this, I see alot of red circles with an X in them that read ERROR.Under properties it says that the Application Management Service terminated with the following error: The specified module could not be found. I dont have a clue what this means or how to fix it...........help.

"The specified module could not be found" means your Application Management Service which provides software installation services such as Assign, Publish, and Remove is disabled. You can leave it as such or set this service to manual.
To set this service to Manual go to Control Panel > Administrative Tools > Services. Double click the service name Application Management. In the Startup type: set it to Manual from the drop down list and OK out.
Also see: Application Management

thanks for the response. In trying to set this service to manual, I went to Application Management in the Services.Manual was listed at start up type. But at service status it read "stopped". I clicked the start button and I get a dialogue box that says "could not start the application management service. ERROR 126: the specified module could not be found". Is this normal? Under service status, should it say "stopped"? Thank you.

You fail you say whether you are running XP Home or the XP Pro version. If you are running XP Home then just ignore the error events for Application Management sevrices.
The Application Management service is not supported in Windows XP Home Edition and the Appmgmt.dll file is not included with Windows XP Home Edition. However, the registry setting that disables this service is not configured correctly in Windows XP Home Edition. Therefore, the uninstallation routine may try to find the Appmgmt.dll file. An entry is recorded in the System event log when the uninstallation routine cannot find the Appmgmt.dll file.

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