I am of a different thought on cleaning and compressing the registry. It is much like any database file, every single thing installed adds junk to the registry, everything uninstalled leaves useless junk behind in the registry. Temp files leave junk in the registry and so forth.
Clean it to remove the junk, then compress it to remove the containers the junk was stored in.
System Mechanic like most registry utilities also will resolve and fix orphaned files/links or give you the option of deleting those which are not needed anymore.
http://www.knowplace.org/registry.html
WHO? Anyone who runs Windows 9x and is concerned about the size of the ever growing Win9x registry on his machine. The hints below were specifically written for single-user configurations. However, I've successfully used the suggestions here on machines with multiple-user profiles as will as single-user profile machines
WHAT? This is a novice friendly step-by-step HOWTO for CLEANING AND SHRINKING YOUR WIN9x REGISTRY. The suggestions here will allow you to compress the size of your Win9x registry without having to shell out any money to anyone.
WHY? The larger your Win9x registry gets, the longer it takes to boot your machine. Besides, there's some concern about the stability of Win9x once the registry size gets out of control. Believe it or not, since it's actually fairly simple to do this, anyone running Win9x ought to do this periodicaly as maintenance.