Win 98 freezes on dfs.vxd at startup

Working on a box for a charity I help on occasion. The box freezes on startup as it goes from the blue screen with the moving band across the bottom. No message or other indication. I went to step by step verification. It progressed to the point of executing the dfs,vxd then just stopped not really froze. I am going to verify the file is there then reinstall a new one any ideas beyond that at this point? Thanks for any recommendations.

 

If the file is located in the c:\windows\system folder, you may have a bad networking setup.