I've attempted several methods to install litestep, using omar's Installer 2.1, or using it and then immediately overwrite it by extracting Indiestep ILS-2003-02-09.zip, the one on the indiestep site (I followed it from sourceforge, and a lot of other links point there as well). When run as as a boot (after selected from ShellOn or directly setting it as shell by editing registy), the system tries to load it for like ten seconds then the error pops up. Then only the wallpaper is there and I need to Ctr-Alt-Del and logout (logout was usually slow, probably takes like 3 minutes). When ran as a program on top of explorer, a similar thing occurs, load for about ten seconds and then the error message (on a lighter note, at least no screen of death...)

Apparently this is a "rare" occurance since I've tried litestep earlier this year (with the same thing happening), then put it off after winterbreak, then now summer and back trying to fix it.
It works on my 98 and XP (just tried it), so I don't think the modules have any problems (I selected the default Simplicity theme and they work).
In any case, thanks for the help. In the mean time I'll try to familarize myself with litestep on my XP.