Error Message: Windows 2000 Is Installed on a Drive Formatted with the OS/2 File System (HPFS)

When you upgrade a system running Windows NT 4.0 Terminal Server to Windows 2000, you may receive the following error message after you enter the alphanumeric product key: This error message occurs even though you do not have any (unsupported) HPFS volumes on the system.

The Homedrive environment variable contains a lowercase drive letter instead of an uppercase drive letter. Type set at the command prompt to view this environment variable.

To resolve this problem, obtain the latest service pack for Windows 2000. For additional information, click the following article number to view the article in the Microsoft Knowledge Base: You can avoid this behavior using either of two methods:

Using the Windows Interface

To change the Homedrive environment variable from a lowercase drive letter c: to an uppercase drive letter C:, follow these steps:

1. In Control Panel, double-click Administrative Tools, double-click Computer Management, expand Local Users and Groups, click Users, double-click Administrator, and then click the Profile tab.
2. In Terminal Server Home folder (or Home folder), delete the entry in Local path, and then click OK.
3. Return to the Profile tab, and then retype the path entry using an uppercase drive letter C:. Click OK.
4. Log off, and then log on as Administrator to create the new environment variable Homedrive=C.
5. Run Windows 2000 Setup to proceed with the upgrade.

Using a Command Line

Windows 2000 Setup does not use the Homedrive environment variable when the Terminal Server is in Install mode.

To switch the Windows NT Terminal Server to Install mode before you start the Windows 2000 Setup program, follow these steps:

1. Click Start, point to Programs, point to Accessories, and then click Command Prompt.
2. Type the following:
   change user /install
3. Run Windows 2000 Setup to proceed with the upgrade.

Microsoft has confirmed that this is a problem in the Microsoft products that are listed at the beginning of this article. This problem was first corrected in Windows 2000 Service Pack 2.