I reinstalled the File and Printer sharing for Microsoft Networks as well as the Client for Microsoft Networks and this solved the problem.
Run exctrlst.exe (Extensible Counter Listing Tool) from the resource kit (see the link below for download) and disable the counter if you don't use it.
As per Microsoft: "The extensible counter list utility (EXCTRLST.EXE) is used to obtain information about the extensible performance counter dynamic-link libraries (DLLs) on a computer running Windows NT/Windows 2000. This utility lists the applications, drivers, and services that are registered to provide performance data through the performance registry. You can use this utility for finding information and for troubleshooting"
According to a user: "To fix this error, I had previously used the EXCTRLST.EXE utility and disabled the performance counters. This stopped the error message appearing in the event viewer, but I still did not have a server service in Services and I got an error message when clicking on shares in Computer Management. Not a big deal I suppose, but I wanted to find out what was wrong. As I have a stand alone machine, I did not have File and Printer Sharing for Microsoft Networks installed. So, I went to dial up properties for my Dial up connection, Under Networking, installed the service File and Printer Sharing for Microsoft Networks Left the check box for this service blank (as I don't want to use it) This immediately enabled the server service and I have since re-enabled the performance counters without any problems or error messages. A sharing tab now also appears under folder properties."