If this is on a new server, please ensure that the installation of The Raiser's Edge or The Financial Edge was performed by using the setup.exe versus using the .msi file. 

1.  Refer to
Implications of removing the xp_cmdshell stored procedure from SQL Server 2000.
Please contact the appropriate software vendor or IT professional for assistance with this process or issue, which is beyond Blackbaud's scope of support.

Note: We provide links to third-party websites in an effort to help you resolve your issue. We are not responsible for the information on third-party websites, and we cannot assist in implementing the solutions on these websites.

2.  Remove puntuation marks from folder name (ie: "RE_FE"  not "RE&FE").