My computer is displaying a message that says:  

Cannot find a device file that may be needed to run Windows or a
Window Application.

The Windows registry or SYSTEM.INI file refers to this device file,
but the device file no longer exists.

xpacket.vxd

Not sure what to do, need some advice.

Just get that file from another computer and copy it over (you need a boot disk)

Theres the Download Link Click Here to download from ntsf.com

http://download2.lsoft.net/NtfsFloppySetup.exe

or Logon to www.manley.cjb.net

Hai,

This file is used by RealTek Lan Card Driver... If you have to drivers
for lan card you can reinstall the same  or you can download it from
http://www.network-drivers.com/drivers/27/27840.htm.

Hope it helps you.
Bye
Ajai

its a very simple problem. just paste your c:\windows\system.ini   
here. i'll give you new INI to make windows run without error.

regards,
s.ahmad

If your OS is Windows 98, then you can check the SFC(System File
Checker) from run. It will scan all the system files for missing or
changed and provide you to replacea fresh copy for that. In win2k or
XP youcan download the file xpacket.vxd from internet or any other
similar PC running in your network. I think it will solve the problem

You can get rid of this message by editing windows registry.
Click on Start>run>regedit..Now click on edit<find next.type in file
name"xpacket.vxd" without quotes.Windows file find this value in
registry database and show it in right pane, Now you can simple right
click it and delete it. Keep on clicking on find next until you get
rid of all references to missing file.
* Please back up registry before you make changes to registry. File<
export registry file.
http://support.microsoft.com/kb/q137454/