IE will not open internet sites

It doesn't matter if its a icon or if I use favorites, can't get sites to open. I will click on a icon and a page will start to open then closes then opens a window and states, IE has encountered a problem and needs to close. Started to do this a few weeks ago but it has gotten worse.
The only way I can get on the internet is to
drag the small window (IE has encountered a problrm) Once you get it open I can open any icon or favorites. Do I have a worn or something. Please help.

 

Is AVG a good protection for the money I had the pro version but it expired a month ago and having charter for a internet server they have a inti virus protection so I just use it but are coming to the conclusion that its junk so I'm thinking of getting AVG again most likely the one with firewall also, would you recommend this of just use the XP firewall.

 

I'm sorry but I'm up at the puplic library the PC just stopped installed the AVG free version and it went to reboot and thats when it started know it won't start up it goes thru all the step to start up just before the desktop opens a little window pops something about documents ddl, I'll have to write it down ,but I close that and another window identacul to the first opens close that, this will happen about 3 times then it acts as if the desktop is going to open its in the background but the little windows will pop up again document dll, X out and the pc will go thru the restart again
I'm just going to reinstall XP. loose all my info but I can't run back and forth to home and the library, for help. Sorry for being so PC dumb

 

I beleive it was AVG that was causing the PC not to start. went to safe mode uninstalled AVG 8 and its running, I will install your recommendations and see if it fixes the IE issue. But thanks Pete for all the help, You guys don't get thanked enough for all the help you provide, I will post back when all the AV are installed. I'm not against giving a few $$ for a good AV either.