This is what I would do if it was me.
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Start cowpod. Follow the instructions here
http://cownap.com/~mtmg/cowpod/registry.shtml
to clear the traxx registry entries. You will find them about two-thirds down the page under "Other registry tweaks". What you want to do is "Clear Traxx"
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I would find the txx and pod files for the tracks I've made and save them someplace safe like C:\My tracks.
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I would delete all track making files from my computer. No matter where they might be. Including traxx.
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I would make a new folder. Something like
C:\Program Files\Traxx
or
C:\Traxx
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I would download traxx again and unzip it to the folder I just made.
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I would start traxx. And when it asks if you want to make new models and art folders, answer yes.
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I would open the track I was working on and extract models and art just like you would do for traxx school or any other track you want to use parts out of.
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I would open the txx file in traxx. Remember, you would have saved it to something like C:\My tracks. You can leave it there, it will still work.
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I would continue working. That's what I would do.
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If you download a model you want to use, when you unzip and it asks you to "c\documents and settings your moma desktop" do not unzip it there. Instead, browse to where you have the traxx program...
C:\Program Files\Traxx
or
C:\Traxx
Make sure the ACT and RAW files go in the ART folder, and the BIN files go in the MODELS folder.
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You've got things all a jumble there and I think the best way is to wipe the slate clear and begin from scratch. Once you do that, you should have less trouble because you will know where everything is... because you will have put it there.