I must have messed my system and getting hits when applications (ie. Perfect Paint) are trying to access libs:jpeg.library (ABOX Emulation). I have tried 2 different versions from Aminet (dated since 2001) but both fail. Is there anything else I should look into pls?

I had similar problems with HD-Rec and jpeg.library. I found several versions and it works for me with one.
http://ghh.8u.cz/friends/jpeglibs.lha