For anyone out there who uses ModelSim PE Student Edition and encounters this #Error loading system# problem, I may have a solution! I myself am a student using Verilog and I have encountered this problem also but I managed to fix it! But to get to the point, this problem appears if your 'Student License' PDF file is contained within the 'win32pe_edu' folder in the main'C:\Modeltech_pe_edu_10.0c' directory folder! Simply move it out of that folder and into the C:\Modeltech_pe_edu_10.0c' directory folder itself! Just make sure that the your PDF student license is only in the C:\Modeltech_pe_edu_10.0c' directory folder and in no subfolders. Note: this error will persist if there is a copied license remaining within the 'win32pe_edu' folder, so double check that this folder does not contain your student license which should be in the C:\Modeltech_pe_edu_10.0c' directory folder! I have ModelSim PE Student Edition 10.0 as a download on my laptop so if you have other versions and are experiencing this error, try the above! I don't know will it work for all versions but give it a try if problems occur! I hope this blog will cure a few headaches! Regards, Sentinel.