This is not something I've come across before; there are numerous references on Google, but I didn't find anything specific. It looks like a DLL has changed and the new copy is incompatible with existing software. The best I can do is put forward a couple of suggestions of things to try.
1) If you can identify installation of a new application (or an update to an existing one) that immediately preceded the occurrence of the problem, remove the update if possible; alternatively use Add/Remove Programs in Control Panel and remove the complete application. Restart the computer after removal.
2) If the previous suggestion doesn't work (or nothing comes to mind) - use System Restore to go back to a time before this problem was first encountered and see if it goes away then. The Microsoft Knowledge Base article on System Restore for Windows ME can be found
here.
I hope one of these suggestions helps.
With regard to using a memory stick on the computer; using USB devices on ME can be problematical. In many cases suitable drivers are supposed to be built in, but one finds they aren't. I recall some years ago wanting to copy user data between two ME computers. A Disgo memory stick worked fine on one but the other complained of no drivers.
By referring to the installation that worked I identified which files were needed. I think I copied some files from the W98 cabinet archives, and tinkered with the dot-ini files to install the files required. Eventually this proved successful but I doubt doing it again would have been straightforward even at that time. Now alas …
David
