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Using Dell Inspiron Laptop with 2GB memory.
Since I installed System Mechanic 7 , I have had a few problems with Windows XP home.
Got infected a while ago which didn't help , seem to be OK now and removed System Mechanic.
Cannot access Help and Support
Cannot run msconfig from Start
Cannot run defrag or disc cleanup.
Cannot use System Restore , no restore points although it is activated.
Tried to make Dell OS recovery CD but job stopped at 87% and cannot start again from beginning.
Do I need to reinstall XP?

Computer is working fine , use separate utilities for cleaning and defrag.

Hello and Welcome to PCHF

It seems I never get done hearing this

I strongly suggest not to use third party registry cleaners as they always come back to bite you


Lets try this first:
Run the System File Checker

Go to the Run box on the Start Menu and type in:

sfc /scannow ( sfc if not reconized) (Note that there is a space between sfc and /scannow)

This command will immediately initiate the Windows File Protection service to scan all protected files and verify their integrity, replacing any files with which it finds a problem.


In all likelihood you will be prompted to insert the Windows XP CD.

Thanks for your advice.

Managed to get disc cleanup and defrag working.
Still getting system restore points deleted. (Approx 18% free space on C drive)
Running Avast Antivirus , AVG Anti Spyware , ZoneAlarm Firewall.
Did not get prompted for XP disc after running system file checker.

My hosts file keeps getting filled up with links to suspicious sounding sites.
Windows defender keeps alerting me to possible hosts file hijack but problem persists after cleaning / deleting file.

It sounds as if your system is still vulnerable to infection/hijacking. I suggest you Follow These Instructions in the following link
Prework

The security staff will help remove any remaining infection(s) and help you place software to help prevent this happening.