OK majik.....
Go to Start>Run and type
sfc /scannow in to the run box and press enter (note the space after sfc)
This will start the system file checker. It will scan your system and try to repair/replace any files you have missing or corrupted. If you haven't installed sp2 you might be asked to insert your XP disk.
After that go to Start>Run and type
msconfig in to the run box. In the top right corner click on the startup tab. Look for the search assistant in there or just uncheck everything except your antivirus and firewall software.
Reboot and tell us if it solved the problem