Does Windows allow you to do a "find"? Search your C drive for application support > preferences or similar. In Illustrator, go to File > Illustrator Preferences ( I'm on a Mac, so bear with me ). You need to setup your scratch disk(s). Once you do, Illustrator will have enough memory to save and store files. Check your hard drive(s) for fragmentation and/or delete any files you do not need anymore ( backup first ). You should have a minimum of 2gigs of RAM for CS2 ( the more, the merrier ).
I found "Support Files, as well as "Output settings" and "Save for Web Settings" for Illustrator. What do I do to set up scratch disks? For CS2 the recommended amount of memory is at least 256 RAM. I realized I can click "Save a copy" or "Save As" and remove the PDF compatibility checkmark.
Preferences > Plug Ins & Scratch Disks ( you can select up to 4 sources or drives starting with your startup drive ). You found Web Settings, but what you want is Illustrator Preferences ( should be found in a source file titled Preferences on you C Drive ). You may or may not have to delete the Preferences file which will automatically be rebuilt at default settings upon restart. Your RAM requiremnts may be as low as 256mb, but that is just a starting put. You need enough RAM to run your operating system and peripherals, as well as other apps you want open the same time you have Illustrator open. Deleting the Illustrator Prefertences file may not be necessary in your case. Setup the scratch disks first.
I can have 2 options...Primary; Start up, and Secondary; C drive. This didn't stop the error from coming.
There is simply no file in the "Source Files" folder that I see titled Preferences. What kind of format is it anyways.