Hi, I saw similar threads, but not the solution that worked for me, so here is the problem:

I have Compaq Presario 1400 laptop, with 320 MB of RAM (64 MB soldered + 256 MB memory stick). Whenever I boot Win9x disk I get the above error. If I install Win9x after 1st reboot it stuck again on this point.
Win 2000 & XP works fine.
Tried removing the memory stick but the problem is the same with or without it.
I also tried to boot to DOS and placing HIMEM.SYS and path to it in CONFIG.SYS on C: drive. Same problem
Memtest shows no errors.

Any ideas?

P.S. Didn't try BIOS flash (didn't find it) nor CMOS clear

Update 1:
Boot from Hirens boot CD