Like I said, two partitions with two OS-es: C:winME and D:winXP.
I know win ME is the devils work, and I considered to upgrade ME to 2000, but I have use ME for long time and just need to have OS other than NT family (already have XP witch works surprisingly well on my old old machine). Also tons of settings and programs installed.
It's bizarre, I know. Thats why it bugs me so. I'm not without any experience, and always find a way to fix problems before, much more serious than this one.
This is what I did: in windows explorer of windows XP right clicked C: (with win ME on it) and then /properties/tools/error checking (check now)/automatically fix file system errors). It informed me that it will be executed next time I boot. So I booted from C: and Windows ME starts until wallpaper appears (thats the point where checking usually starts) and nothing happens.
Well, first time I booted, autochk.exe (I had copy of this file by pure chance in the root of C: putted there much earlier) witch is checking utility of XP not ME, informed me that expected newer version of windows and exit. I deleted that file and now doesnt happening anything at that point.
I inspected some of startup locations in registry of ME : Machine
..Run,RunOnce (from DOS boot floppy) nothing shifty.
Is it somewhere in the boot sequence (boot loader
Maybe some system file is damaged, or wrong registry setting, but shouldnt reinstall of WinME fix that.
Windows XP on D: boot and works normally.