SYSTEM32 folder opens on startup!

One of my XP systems is now opening the "system32" folder each time someone logs into the local computer.  I have checked for virus infection, ran spybot and adaware, and ran hijackThis on it but cannot figure out what is causing this.  I have also tried the #260 tip listed in other threads but that runs and says there is no entry of that type in registry.  I have checked the registry RUN commands but have no strange entries there.  I have disabled everything in the MSCONFIG startup items and that does not help either.
Here is the info I copied from HijackThis...

StartupList report, 6/22/2006, 2:43:01 PM
StartupList version: 1.52.2
Started from : C:\HijackThis.EXE
Detected: Windows XP SP2 (WinNT 5.01.2600)
Detected: Internet Explorer v6.00 SP2 (6.00.2900.2180)
* Using default options
==================================================

Running processes:

C:\WINDOWS\System32\smss.exe
C:\WINDOWS\system32\winlogon.exe
C:\WINDOWS\system32\services.exe
C:\WINDOWS\system32\lsass.exe
C:\WINDOWS\system32\svchost.exe
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\system32\spoolsv.exe
C:\PROGRA~1\Grisoft\AVGFRE~1\avgamsvr.exe
C:\PROGRA~1\Grisoft\AVGFRE~1\avgupsvc.exe
C:\WINDOWS\system32\cisvc.exe
C:\Program Files\Common Files\Microsoft Shared\VS7DEBUG\MDM.EXE
C:\WINDOWS\System32\svchost.exe
C:\WINDOWS\system32\cidaemon.exe
C:\WINDOWS\Explorer.EXE
C:\PROGRA~1\Grisoft\AVGFRE~1\avgcc.exe
C:\WINDOWS\system32\ctfmon.exe
C:\HijackThis.exe

--------------------------------------------------

Checking Windows NT UserInit:

[HKLM\Software\Microsoft\Windows NT\CurrentVersion\Winlogon]
UserInit = C:\WINDOWS\system32\userinit.exe,

--------------------------------------------------

Autorun entries from Registry:
HKLM\Software\Microsoft\Windows\CurrentVersion\Run

AVG7_CC = C:\PROGRA~1\Grisoft\AVGFRE~1\avgcc.exe /STARTUP

--------------------------------------------------

Autorun entries from Registry:
HKLM\Software\Microsoft\Windows\CurrentVersion\RunOnceEx

(Default) =

--------------------------------------------------

Autorun entries from Registry:
HKCU\Software\Microsoft\Windows\CurrentVersion\Run

ctfmon.exe = C:\WINDOWS\system32\ctfmon.exe

--------------------------------------------------

Shell & screensaver key from C:\WINDOWS\SYSTEM.INI:

Shell=*INI section not found*
SCRNSAVE.EXE=*INI section not found*
drivers=*INI section not found*

Shell & screensaver key from Registry:

Shell=Explorer.exe
SCRNSAVE.EXE=C:\WINDOWS\System32\logon.scr
drivers=*Registry value not found*

Policies Shell key:

HKCU\..\Policies: Shell=*Registry key not found*
HKLM\..\Policies: Shell=*Registry value not found*

--------------------------------------------------


Enumerating Browser Helper Objects:

(no name) - C:\PROGRA~1\SPYBOT~1\SDHelper.dll - {53707962-6F74-2D53-2644-206D7942484F}

--------------------------------------------------

Enumerating Task Scheduler jobs:

Norton Internet Security.job
Symantec NetDetect.job

--------------------------------------------------

Enumerating Download Program Files:

[Shockwave Flash Object]
InProcServer32 = C:\WINDOWS\system32\Macromed\Flash\Flash8b.ocx
CODEBASE = http://fpdownload.macromedia.com/get/flashplayer/current/swflash.cab

--------------------------------------------------

Enumerating ShellServiceObjectDelayLoad items:

PostBootReminder: C:\WINDOWS\system32\SHELL32.dll
CDBurn: C:\WINDOWS\system32\SHELL32.dll
WebCheck: *Registry key not found*
SysTray: C:\WINDOWS\System32\stobject.dll

--------------------------------------------------
Autorun entries from Registry:
HKLM\Software\Microsoft\Windows\CurrentVersion\policies\Explorer\Run

wininet.dll =
kernel32.dll = C:\WINDOWS\system32\