Why would my file: msvbvm60.dll be missing? I noticed an update - Is this file danerous or what?

msvbvm60.dll  file was found missing on my PC also I found some strange behavior this morning despite
a heavy software firewall in place(Zone Alarm Pro)
No activity had been performed on my workstation all night but this morning while using RDP sessions I found a weird problem with the CMD windows I opened.  I could not type in them. I also could not
even do a simple dir - ervery time it maximized the window to full cmd screen mode.
After doing a warm boot the keyboard failed to work in the initial logon screen which is most alarming.

I  know that hacking is at an all time high these days but this really gets me angry that despite using firefox 3.01. Despite checking the download sites I use that such a potential violation could have happened.
I am hoping for a better answer here than check the viruses and keylogger trojans. I have not installed software on my system for many weeks so this is ridiculous.  I do have a netstat tool that perpetually lets me know who is connected and from where. Unfortunately with these akami services I can not really know who is connected and they won't tell and that is the real danger of Akami - Anoymous connections.  Now I really do not know what connection is good and which is bad. It really does not help anything and as for the two recent events I am in urgent need of a real solution.
My system is up and running and frankly I need a real protection from such an attack. By the way I hardly ever use IE any more. Only for updates and websites that I need to use that require IE
and luckily they have been few!

Note the Event logs shows very little to my utter frustration:
Event Type:      Warning
Event Source:      Userenv
Event Category:      None
Event ID:      1517
Windows saved user HOST\USER registry while an application or service was still using the registry during log off. The memory used by the user's registry has not been freed. The registry will be unloaded when it is no longer in use.

 This is often caused by services running as a user account, try configuring the services to run in either the LocalService or NetworkService account.

For more information, see Help and Support Center at http://go.microsoft.com/fwlink/events.asp.
Also the event:
Event Type:      Error
Event Source:      BROWSER
Event Category:      None
Event ID:      8032
The browser service has failed to retrieve the backup list too many times on transport \Devic\NetBT_Tcpip_{5AA6E445-1417-4D00-9E87-094EB03EF9BE}. The backup browser is stopping.

I do have the ability to log things better using SysInternals PROCMON  and plan to use this to get more info as well as the netstat utility but I would really appreciate if someone could explain the behavior
for the logon screen. Note that this version of XP is the home edition. I also had to power down the workstation to clear the problem. Nothing I typed showed up in the logon screen. Like the keyboard was disabled within the warm boot. To me that is really scary behavior!