The "the component IoloSystemService" Error message shows up due improper installation of the System Mechanic Pro. Some of the Iolo dependencies failed to get activated and that is the problem.

Now the only solution to fix it is to follow a thorough uninstallation of the System Mechanic Pro.

For WinXP, you can uninstall it from the "Add or Remove Programs".

Next, once its unistalled do not RESTART the PC.

Now, go to the Registry (press "windows" + R to open the run command and type "regedit").

OR

Click the Windows start button and select RUN. Type REGEDIT on the openfield.

On the left-hand side, expand HKEY_CURRENT_USER by clicking the + symbol next to the entry.
Expand Software.
Expand the iolo folder.
Navigate to the System Mechanic Professional folder.
Right-click on the System Mechanic Professional folder and select Delete.
Click Yes to confirm the deletion.
On the left-hand side, expand HKEY_LOCAL_MACHINE by clicking the + symbol next to the entry.
Expand Software.
Expand the iolo folder.
Navigate to the System Mechanic Professional folder.
Right-click on the System Mechanic Professional folder and select Delete.
Click Yes to confirm the deletion.
Close the Registry Editor.
Click Start>My Computer and then navigate to your Local Disk (usually the C: drive) then Program Files\iolo\System Mechanic Professional.
Right-click on the System Mechanic Professional folder and select Delete.
Click Yes to confirm.

Reinstall the System Mechanic Pro