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Windows XP Group Policy is blocking everything

Once I login, any icon I click on pops up a "Restrictions" error window containing this message:

"This operation has been cancelled due to restrictions in effect on this computer.  Please contact your system administrator."

I was adding a group policy to stop execution of certain applications and must have accidentally done something that blocks everything.  I tried Safe Mode and there was no difference.   I can access the control panel but none of the icons will execute.  None of the administrative functions can be run (regedit, poledit.msc, etc).  I tried loading a previous snapshot of the registry and it did not fix the problem.

How can I either edit the group policies and undo whatever I did or put them back into an "empty" state?
Avatar of JonathanHemmings
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System restore?
Put your XP in a new OU, Block inheritance on that OU & reboot , but make sure nothing is Enforced above that.

If there is something Enforced, then go to that policy & depending upon computer or user policy, go to Delegation & deny AGP to computer or user.

If you are able to start Command Prompt. Run following commands

reg delete HKEY_CURRENT_USER\Software\Policies /f
reg delete HKEY_LOCAL_MACHINE\SOFTWARE\Policies /f

then you should be able to start any application.
He can't run regedit
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I can boot on theUBCD4WIN CD to bring up XP and then edit the registry on the C: drive and access any files.  I am able to run taskmanager, and when I click on an icon, explorer.exe and winlogon.exe run for just a moment.

I deleted both policy entries in the registry, but I still cannot run any applications or administrative programs.
Did you try the OU method?
If you really want to go Nuclear, then disjoin the computer from Domain & login as local admin, however try what I suggested above.

This is a standalone PC and does not connect to a domain.  I checked the registry using the UBCD4WIN and there were no OU's to which to move the PC and no group policy editor to create an OU.
Do you have a computer which is standalone itself & is working without these problems?
Yes several
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or if you want, as you mentioned you could boot from CD & access the command prompt:

Whatever you want.

But, copying is pretty straight forward & easy.

Thanks for the help!
Glad to be of help.