When I start the computer up the icons/screen looks as though it has started in safe mode(large icons/odd scrambled colors). Also the mouse will not work/show up. The computer tells me to change the screen resolution to 800x600 because at the present time the resolution is lower. When I go to the Display window and attempt to change the resolution, I of course have to reboot the computer. When I do, I get the same problems. I have run an up-to-date current virus scan of AVG. My computer is five years old and still runs Windows ME. Thank you for your help!

In case you didn't know, Windows ME has a very bad reputation in the computer world. If you can run it for five years and put up with it, I commend you!
Your computer likely has some adware on it. Have you run Lavasoft Adaware or Spybot on it?

I ran AVG, spybot, and adaware........none worked. I got greedy and did a system restore for two days ago. It worked, everything seems to be fine. Hopefully, I didn't screw up anything too bad. Thank you for your help anyway. Much Appreciated

And yes I am fully aware of Windows ME reputation. But it actually hasn't been that bad, or maybe I just don't know how much better it can be?