Yes, it's a sign of trouble. Your System Restore feature is likely broken. Can you run SFC /SCANNOW ?
I receive this message every time I open Win XP Pro. It also says "The specific module could not be found". I just click OK and continue on, it does not appear to be hindering me in any way. I am curious about any error messages because they might be a problem somewhere in the future. Can anyone enlighten me on this one. Thanks, Bob