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Speeding up your computer with MsConfig can be tricky if you do not understand what you are looking to accomplish!
Launching msconfig is a little different in each Windows version, however I assume we know how to get msconfig up and running.
Assuming you are using a flavor of Windows XP, the options should remain more or less the same.
The first tab (General) has few options that will make your computer faster. If you choose to boot the PC in Diagnostic Startup with the basis drivers and services, the computer will definietly be fast however it may render most software useless. I prefer a Selective or Normal startup.
Do not mess with the SYSTEM.INI, WIN.INI and BOOT.INI if you do not know what you are doing. So for the benefit of the general users, I will skip this section. Note there aren't too many options that you can manipulate here anyways to make your computer fast.
The best place to start would be the last tab (Startup). Here is the location that will give you all those programs that start and run (continuously in the background) that you could avoid. I would disable most of the names of programs one by one that I cannot recollect to have installed or seems to have a windows sounding name. Disable multi anti-virus software if you have then enabled. Disable all your messenger programs. If you use the computer only for chatting then you could keep it otherwise it wouldn't hurt to remove this. Some of these programs can take up lot of memory space.
Next I would come to the fifth tab (Services). I would check the "Hide All Microsoft services" to reduce the list to a manageable size and then start on looking at the "Running" column to find out which services get started during booting and I do not need them. After identifying these "services" I would go to "Services" from Control Panel and disable their startup. Unchecking them here will also make them disabled. Then I would uncheck the Microsoft services. I would disable the ones that I do not need. Most of them would be related to networking (connecting to your corporate network or otherwise). If you use the net frequently you can still disable the ones that you do need like IIS, DHCP, WebClient, Wireless configuration, Windows Management and others that are not required at all times.
After doing this, do a clean boot, shut down and restart. This would give your system the necessary speed boost.
Note: You may press and hold the Shift key (till you see all the icons on the desktop) while windows boots to disable the startup programs as well.
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