KERNEL 32.DLL Error in My Documents

Is that the extent of the error message you're getting, or did you leave some details out?  If the latter, you need to post the complete contents of any error messages and double check them for accuracy, as one or two mistyped characters can make it hard to troubleshoot these problems, but you might start by reviewing this document:

http://support.microsoft.com/?kbid=188540

I'd also recommend running a thorough check for malware with a current version of SpyBot Search and Destroy, as there are a number of junkware apps that can cause errors such as this.

This looks like it may help...

...odds are there's a control panel file (with the .cpl extension) in the Windows\System folder that is damaged or otherwise incompatible with the OS. Resolve the problem by starting your system in Safe Mode. To do this, hold down the Ctrl key while the PC is booting up and choose Safe Mode. Then, click the Start button, Search, For Files Or Folders and type *.cpl in the Search For Files Or Folders Named field. Click Search Now, noting the original file names. In the Search Results pane, right-click a .cpl file in the Windows\System folder, and click Rename. Rename the Mca.cpl file first (if it exists), and also rename the first file in the Search Results pane to an .old file extension. So, if the file name is File.cpl, rename the file to File.old. Also, note which file you have renamed on the list of original file names. To see if it worked, try to open the Control Panel. Keep repeating this process until you can open the Control Panel, and verify that the last file you renamed is the damaged or incompatible file. Then, rename all of the files you renamed back to the original file names, except for the file that you determined is causing the issue. When you're finished, reboot your computer.

In instances like this, you're usually better off starting a new thread regarding your individual issue than you'll be tagging this onto a previous thread about a different issue, but:

1. If you can get the system to boot to Windows, you need to run a complete scan for viruses with an  up to date anti virus application.  If your AV program isn't up to date, this will probably be pointless, as new viruses are identified practically every day, and you could very well be a victim of one of the newer ones.

2. You should install Spybot Search and Destroy, update it upon installation, and run a complete scan for malware.  You should also use the Immunize function, once you have installed and updated Spybot.  Let the program remove whatever malware it finds.  It will create a Restore Point in the event that something gets removed that shouldn't have been, but this is rarely an issue.

http://www.safer-networking.org/en/index.html Spybot S&D

If your AV program is functioning properly and kept updated, and if you run something like Spybot on a regular basis (Spybot is a free program, by the way), it should not be necessary to purchase/install much of anything else, with the possible exception of a firewall, if you're on a broadband connection, and there are a number of good free firewall applications available, too.  I have never heard of the "Sunbelt Anti Spyware Bundle," and cannot imagine having any need to purchase such a thing for any of the 7 systems I have running here on a regular basis.

Problem Description:
I am hoping to get help in finding and correcting the problems we are
experiencing with our Dell Computer.
First I have tried Dell's Top Tips and followed directions for the
Microsoft Windows ME and the computer still locks up or gives me
messages.
Second I have tried the Windows Me System Restore utility - no luck.
The messages received attempting to access different files "My Files",
Word Document and others:
The system is dangerously low in resources. Would you like to terminate
the following application? Winword [Not responding] Yes No Cancel

C:\My DocumentThere is not enough memory to run this program. Quit one
or more programs and then try again. OK Note: No other programs were
running.

C:\Program Files \Microsoft Office\Office\Winword.EXE

Error 8602-Auxilary Device Failure
Keyboard failure
Strike F1 key to continue, F2 to run the setup utility Note: Tried but
computer didn't respond.

Because of the computer lockups - shut down and restart have been
necessary - this goes to scan disk-improper shut down - stated.

Motive Directory has caused an error in KERNEL32.DLL

At times clicking the start button will pop up a blank screen.

I am currently using different categories in Dell Help and Support and trying disc defragment.

It has been recommended that I purchase Sunbelt Anti Spyware Bundle. It does appear that there is plenty of hard drive space available.