This error is mostly caused by NetMedic. Make sure to remove syshook.exe from \ Windows \ Start Menu \ Programs \ StartUp.
Net.Medic has released a patch for Windows 98 users, but it is not at all clear if this patch will work for Windows 95 users.
If you're still having problems, or don't have NetMedic:
Try reinstalling TCP/IP:
1. Go to Control Panel > Network, and select TCP/IP
2. Click Remove, and then OK
3. After rebooting, return to Control Panel > Network, and click Add
4. Select Protocol > Microsoft > TCP/IP. Click all the OK's
This has also been suggested
This is to do with the WSOCK32.DLL & WINSOCK.DLL files being damaged & in need of being replaced. You can verify this by checking that :
WINSOCK.DLL = 42k in Win95, 21k in Win98
WSOCK32.DLL = 65560bytes in Win95/98
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