everytime i try to open anything a box pops up and says: You have chosen to open "anyapp".exe which is a: Application from :C:\Program Files\ "anyapp" Would you like to save this file?

to PCHF.

Open the Windows Explorer and verify that the C:\Program Files\"anyapp" exists.

When i try to open Windos explorer i get the same message "You have chosen to open explorer.exe which is a: Application from : C: Documents and Settings\Owner\Desktop Would you like to save this file?"

Can you boot up into the Safe Mode (F8) ?
If you can, do you get the same reactions to "anyapp".exe?

Exactly the same in safe mode. Interesting that this computer is shared with my wife. you know how xp lets you both have your own home page, settings, bookmarks etc. Well on her side everything works. on my side i can only get firefox to open. IE7 and all applications do not open on my side but, will open on her side in IE7 or firefox ?????

Follow the Pre Work link in my sig and post the logs for our security team to look at If the security team dont find anything then ill post a link that tells you how to copy user data over to a new profile.