Pick your choice from http://www.google.com/search?q=%22msgsrv32+has+caused+an+error+in+krnl386.exe%22
I had to correct a lot of typos in your quoted error message; I hope I did it correctly. Most likely it is some malware (virus or spyware), but Norton Antivirus has been implicated also.
If you can't find and correct it, start all over with a fresh install of Windows Me.
Hope this helps.
Kees
When I turn on my computer, I get the above error and can go no further. This happened to me several times when I was having a problem getting on the internet, but I could eventually get my computer to come on - now nothing but that. It also does not come on in safe mode. It happened before (when I was having internet problems) when I would go to a restore point on my BellSouth DSL help. I would then do a scan for errors, and it went away. I don't know what caused it to start now. I have a Dell 8100 using Windows ME. Any help would be appreciated!!