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What is sysfader.exe?
Well, no first of all, it is not spyware
In fact it is a part of Windows XP that provides all the so called "cool animation effects". These include fading menus in and out. Animating windows and so on.
However, the fact is that you don't need sysfader on your computer. You're better off without it, especially if you're getting a lot of 'Sysfader.exe has crashed' errors or if your computer is running slow. Even if you don't think it's slow I recommend you read the whole article below.
To get rid of this problem all you need to do is this:
Right click on My Computer and click Properties.
Go to the 'Advanced' tab
Under 'Performance' click on 'Settings'
Under the 'Visual Effects' tab uncheck the first four check boxes
These 4 boxes are "Animate windows when minimizing and maximizing", "Fade or slide menus into view", "Fade of slide ToolTips into view" and "Fade out menu items after clicking".
To make your computer even more faster, uncheck other checkboxes for the effects that you feel you can live without, for example "Slide taskbar buttons" etc...
If you like your Windows XP theme the way it is don't uncheck the last option that says "Use visual styles on windows and buttons". I also recommend you leave the "smooth edges of screen fonts" and "Use common tasks in folders" options unchecked"
If you don't use a wallpaper then I recommend you also uncheck "Use drop shadows for icon labels on the desktop"
Click on 'OK'
After doing this the problem with sysfader should instantly go away (hopefully). And your computer is going to become much more faster without those annoying (at least I find it annoying) effects slowing it down. Please read other articles on how to make windows xp faster if you want to make your computer faster, and get rid of other .exe errors with windows that seem to happen oh so frequently.