Sorry to bring this back up, but did you ever get your situation resolved phototec? I ask because Im in the same boat.
Its a little different, but not that much.
I do primarily small, intricate masking designs and have been using Quick Cut actually (w/illustrator for the last 6 years..on graphtec ce2000, winXPpro), but recently had a problem arise, then this same error when I installed Cutting Master2 v1.7.
I believe this all started when I used a free optimization software called Advanced System Care from IObit. Unfortunately I didnt catch the issue right off the bat, and when I finally did, upon system restore, my over stressed HD required immediate disk clean and apparently the system restore history was then auto-erased (unknown to me at the time) due to lack of disk space. So because I didnt realize at first that ASC was the culprit, I had reinstalled and used it for further "house cleaning", but eventually found I could not cut again..and worse, now I cant use the system restore to get back to the point where it was working. Needless to say, I feel like an idiot, but circumstances can be tough.
Anyway...
Ive tried the recommended reg-doc software, (thanks..found stuff ASC didnt!) after uninstall of both illustrator and cutting master2, but after reinstall..I still have the same issue when trying to cut from illy. I can send to "print"...but incomplete cut on a simple circle, so I dont trust that and the test cut works from within CM2, just not from illy whether CM2 (or quick cut for that matter, tried both) is already running or not. Ive got and tried both serial and usb hook up to the machines btw...no difference. Cutter works, but the communication problem within illustrator remains unchanged.
So I guess what Im asking is..do I have any other choice but to reformat/reinstall XP? Otherwise...what necessary system file could the ASC program have removed/changed which would not be replaced upon software reinstalls? Ive reinstalled my cutter drivers, tried two cut plugin titles, reinstalled illy and still have the problem.
Any ideas or help..or even just saying reformat...just dont want to go there unless totally necessary.
Thanks!!