JSI Tip 1663. W9x client receives WinNT error, "Cannot Find the Working Folder for This Program", before processing logon script?

When your W9x client receives the subject error, pressing YES to the Do you wish to run the program anyway? message runs the script.

Make sure that the working folder is properly configured. Right click %WINDIR%\System\Lmscript.exe and select the Program tab. Use a valid directory in the Working field or a . to use the current directory.