Here is how to fix the “No More File Handles Left” for Windows/XP

Left Click START
Left Click RUN
type COMMAND to open the DOS terminal windo and get to DOS prompt
at the C:> prompt - type "cd windowssystems32" without the quotes
you should now be at
c:WindowsSystem32>

type "edit" without the quotes and you should get to the Dos editor

Click "File" and "Open"
find the file called "CONFIG.NT" and press OK (you will have to scroll
down to find it but it should be there)

With the file open scroll all the way down to the last line. Most of the lines
are "remed" out.

Change "files=40" to "files=200" (without the quotes)

Left Click (at upper left of DOS Window) "File"
Left Click "Save" and the Config.nt file is now saved.
Left Click "Exit" to get out of the DOS editor
at C:> promt type "Exit" to close the DOS terminal window
No you must reboot your computer