strange. I just typed it in exactly as I said and expanded it to a temp folder instead of the correct one and it worked fine.
Please check yourself on the exact syntax as shown.
It might be that you do not have the c:\i386 folder on your system. If not, use an xp cd and do the same thing, substituting the following:
expand D:\i386\msvcrt.dl_ c:\windows\system32\msvcrt.dll (NOTE the underscore)
This assumes that D is your CD. If not, use the correct drive designation