A virus.
Spyware.
A fluke in Windows.
A failing hard drive.
Who knows?
The solution is to copy C:\WINDOWS\REPAIR\AUTOEXEC.NT into C:\WINDOWS\SYSTEM32\.
If Service Pack 2 makes things worse, you've definitely got some spyware problems going on. QUIT USING INTERNET EXPLORER!@#$

hmmm...when i try to run installer, i get an empty dos box with no type...on the top it says ntvdm-edc.eBc.3e0001 ... i have to force this box to shut... so you mean to say the problem could be thanks to some damn spyware? i swear, go to one website....theres a sudden slow down, and my computer is dying with adware.

Yes. That is why I said:
Quit using Internet Explorer! 😀
Anyway that is another tangent for another day.

NTVDM will create random names for itself when you execute a DOS program directly by double-clicking on it in Windows Explorer. This is normal. If the program isn't running... that's a result of the program not running, for whatever reason. Try copying CONFIG.NT out of REPAIR, too.

ALL RIGHT!!! DOS WORKS AGAIN!!! but...

having trouble getting the game to start. what i did was load the batch exe file with VDMS default settings. it got down to the point where the games checking off every file, then wher its supposed to go to the main menu it just hangs. im sorry, im still pretty newb to VDSM, but according to some post they got this game to work fine with it.

This is not surprising, since there are hacks that you need to use to get it to work. Please do a little searching and a lot of reading.
Keywords: REDNECK RAMPAGE, BLOOD, DUKE NUKEM 3D, BUILD

so far ive got it working, sound & 8-track playing really well! its just that ingame speed is slowed. its not choppy but just slow. but whenever i hold down a button like the use key or the quick pee button it smooths out. is the only way for me to play going to involve constantly holding my hand at a funny angle, or is there a way to fix it?

There have been a number of people coming to the Sierra boards with this same error message. It seems that there is something that has been deleting the AUTOEXEC.NT file.