w98se download error message

when i try to download, the download manager opens, then the download begins, but eventually i get a message that says unable to open the file, and it says to try caving the file first, then it says 'sorry about that'
i cannot find any reference to the download manager using help, and don't know how to change the destination folder or otherwise address this issue.
i ran drwatson and took a snapshot.

 

It is possible a program has left a plug-in in the registry.

First backup your registry:

Go to Start > Run > type regedit, click Ok. The Regisry Editor will be displayed. Select Registry from the menu, then Export. Export a copy of the Registry to the Desktop.

Navegate to the Extension key HKEY_LOCAL_MACHINE\Software\Microsoft\Internet Explorer\Plugins\Extension as follows:

Click on the + signs next to HKEY_LOCAL_MACHINE, then Software, then Microsoft, then Internet Explorer, then Plugins. Click on the key Extension. Make sure is "Extension" under plugin and not before. Hit the delete key and confirm its deletion. Close the Registry Editor and restart the computer.

Test and let us know the outcome.