SOLUTION FOUND:

I found this info on another message board and was about doing backflips when I found out it worked.

Here's how to fix this issue:

1. CTRL-Alt-Del to bring up Task Manager.
2. Click File | New Task(run).
3. Type regedit in the Run box and click OK.
4. Browse to the following registry key:

HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\
Windows NT\CurrentVersion\Image File Execution.options

5. Under this key there will be subkeys named explorer.exe and iexplorer.exe. 
These keys are pointing to files that have been removed (virus/spyware); explorer32dbg.exe and iexplore_dbg.exe. Delete the explorer and iexplorer keys entirely. The should not be listed under the Image File Execution.Options key.
6. Close the Registry Editor.
7. Restart the computer.


A ako ne pokusajte startovati SYSTEM RESTORE
Otkucajte sledeæu komandu u command promptu i pritisnite ENTER:
%systemroot%\system32\restore\rstrui.exe