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Explorer.exe Issues: Pop up Error and Event IDs: 1000, 1002, 1030, 1058

As of this morning I have machine with two error pop ups concerning Exporer.exe.  One opens as soon as the machine logs on and never leaves.  It states "Windows Explorer has encountered a problem and needs to close."  After which you have 3 options:  Debug (fails), Send Error Report, or Don't Send.  All three options end with the pop up coming back- its very persistant.  The second Error occurs during Shut Down or Restart.  Its error code is " 0x00003d40 at 0x10003d40."

The Debug Report:

When checking the even viewer, I have the following Event IDs:

1000  Aplication Error
"Faulting application explorer.exe, version 6.0.2900.3156, faulting module unknown, version, fault address 0x00000000."

1002 Application Error
"The shell stopped unexpectedly and Explorer.exe was restarted."

1030 Userenv
"Windows cannot query for the list of Group Policy objects. A message that describes the reason for this was previously logged by the policy engine."

1058 Userenv
"Windows cannot access the file gpt.ini for GPO CN={31B2F340-016D-11D2-945F-00C04FB984F9},CN=Policies,CN=System,DC=sdg-structure,DC=com. The file must be present at the location <\\\sysvol\\Policies\{31B2F340-016D-11D2-945F-00C04FB984F9}\gpt.ini>. (Access is denied. ). Group Policy processing aborted. "

I have been working through the steps on the user level in this link here without any luck:

Hijack This Report: 12 KB document 11/28/2007
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1 Solution
check this out lemme know if it does anything for you;en-us;891608
Also if nothing there helps this seems to be a sure-fire solution to prevent the consistent explorer.exe failure
If you have an AMD processor: the Start button at the bottom left of your screen the Control Panel menu item
3.then double-click the System icon.
4.Click the Advanced tab
5.Find the item marked Performance right under there is a button that says Settings.
6.Click the Data Execution Prevention tab.
7.You'll see two options in that window click the second option that says "Turn on DEP for all programs and services except those I select."
8. when you are finished with that then click the 'add...' button it should be visable at the bottom of the box. then you have to find where the file 'explorer.exe' resides on your computer most of the time it's something like this c:\windows\explorer.exe anyway add explorer to that list. It'll give you a warning just ignore it and click ok. Then  reboot.
fathermanIT ManagerAuthor Commented:
Unfortunately the link did not help, so I chose to use the OEM XP disc to repair the OS.  The repair went smoothly, and everything seemed fine until I began to install the MS updates.  The updates download fine, but there are issues installing.  Until today, I have not worked on this machine since the 28th.  My memory is a little vague on the steps I took for the updates but I drilled fairly deep through searching without anyluck.

I'm currently installed IE7 and I am going to go from there.
fathermanIT ManagerAuthor Commented:
Update issues have been resolved using this thread:

Mods, pleaes close.
PAQed with points refunded (500)

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