Desktop Icons freeze at start up - XP IE8

My pc boots up OK and takes me to the Icon screen but I'm unable to open any of them - it's like they are frozen. (Win Xp Home edition, IE 8 - just updated from 7 a couple of weeks ago) )

I've tried all kind of solutions such as CCleaner, Malwarebytes, Virus Scans,
Msconfig -tried disabling all start ups, System Restore and to last known good config. etc. etc.

The only way so far that I have been able to get them unfrozen and to work is Ctrl/Alt/Delete enter Windows Task Manager and click on any of the headings Applications/Process/Performance/Networking or Users.... this seems to kick start my desktop icons and everything is OK - until I boot up again. It's a mystery to me - anyone any ideas I can try ?

 

I hadn't tried but have now. Safe Mode with Networking does not let me open by clicking on the User or Admin icon - going to Ctrl/Alt/Delete does
then I'm in and OK.

In just Safe mode I can click (several time) on User and I get in to the desktop with my password but the same thing happens with the desktop icons and I need to use the Ctrl/Alt/Delete to get everything working.

While in Safe Mode I ran Malwarebytes - no infections. I also rebooted my
Internet modem with no change.

 

Hi Pete,
Well I started the uninstall of IE8 as you suggested but the Blue Screen of Death popped up with the following message:

A problem has been detected and windows has been shut down to prevent damage to your computer

BAD_POOL_CALLER

If this is the first time you’ve seen this error screen restart the computer .If this screen appears again and again follow this steps


Check to make sure any new hardware and software is properly installed.

If problem continue disable or remove any new installed hardware or software. Disable BIOS memory such as caching or shadowing. If you need to use safe mode to remove or disable component, restart you computer, press F8 to select advance start-up option, then select safe mode

Technical information

*** Stop: 0x000000C2 (0*00000040,0x00000000,0x80000000,0x00000000)

etc. etc

I'm in Ontario, Canada (originally London 50 years ago) so you're 5 hours ahead of me and possibly sleeping right now - I'm back where I was so can still use my pc - I'll wait to hear from you. Cheers mate !!!

 

Thanks Pete - I followed Method 2 all the way but still have the same problem.