xp pro hangs after logon. Task Mgr is available but no desktop

xp pro svc pack 3 recently had a trojan (zorg) removed. No trace is left, but now xp hangs after the user logon screen.

I've gone so far as to do the reinstall repair an existing xp pro installation (not the recovery console) and still it hangs after I login.

I start the task mgr and see that explorer is running in the svc's, but the desktop won't load.

On i tried the sfc scannow and it fired up all the other svc you'd normally see, but then poof, I get the NT error box that says "windows must restart because the remote procedure call terminated unexpectedly"

Any help would be greatly appreciated. Should I reinstall xp pro on a new partition, rename the old one and run programs from there.

ARGHHHHHH!