PROBLEM SOLVED:
I went
here for the solution.
NOTE: If you can not run the exefix_xp.com utility and are prompted to open it with a file, navigate to c:\windows\system32\cmd.exe and use the command line to execute the file - it was my only option. Reeboot when you are done.
Also, some other symptoms of this problem (before I fixed it) were:
Startup programs didn't start - like antivirus, google desktop, etc. and I couldn't use folder links in the start menu like add/remove programs although, folders on my desktop worked fine. I don't think this was a virus, just a poorly installed program which messed with the registry a little.