Did you run SFC Scannow

I ran ERUNT and SFC Scannow as you suggested. It was not really so hard. But the result was "no incompatibilities or problems". I then downloaded "File Recovery on Hard Drive" which had a link on the same website, but after looking at all the files that came up I was petrified to dare recovering any of them, especially when I got a message that said it might delete important data.
Looks like I'm just going to have to call Dell and spend another 2 hours trying to understand the "English" and work out more useless instructions from a representative.
Thank you all SO MUCH for trying to get to the bottom of this weird problem with me. Any and all thoughts on the solution are still eagerly awaited and welcomed. I wish I knew 1/10 as much as you do with this technology.

Hi Jaminky,

When you ring Dell, ask where you can send the computer for warranty work to be done. Tell them you are not technically knowledged enough to be able to work out what is wrong. Also ask (if they refuse to help) what then is the Dell warranty worth if not to satisfy the client (that is you).

I am really sorry I cannot assist you more, but your problem is a hands on one at this stage I think. That is of course if some other volunteer does not come by to assist you.

Good luck and kind regards,

I apologize for coming in late - just thinking out loud - you said,

I did a system restore just a few days

To be clear, you used Dells recovery program to return your computer to out-of-the-box condition, correct? Just being sure since "System Restore" is a Windows System Tool used to restore a system, roll back in time to a previous configuration based on previously saved "Restore Points".

I agree 100% with tallin - Dell needs to be helping you more, to the point where you start talking about getting your money back (even if not at that point - yet!). Do not risk voiding the warranty. The #1 reason for buying a factory made PC, IMO, is because you only have 1 phone number to call for any help.

However, as a long time IE user, I respectfully disagree about IE7 and, frankly, am surprised a 4 month old computer came with IE6. Everyone should be at IE7. I never fell for the hype from Firefox fanboys and Microsoft bashers that my computer was unsafe if I used IE6, or that I would be safe just for using FF - I have always been able to stop those conversations in their tracks by asking if they STOPPED getting infected after switching to FF? Of course these folks were not getting infected before because they kept their systems patched, updated, scanned, and blocked with updated anti-malware tools and properly configured firewalls. They practiced safe computing!

The best defense and weakest link is the user. NOT keeping our systems updated and patched pushes our defenses towards that weak link side. Not good! The problem with not having an updated system is if defenses are compromised, not just that computer and data stored on its drives become at risk! That computer may then be used as a tool against other computers, starting with any in your own trusted zone! It matters not what browser you use if you or someone using your computer opens an infected attachment, or downloads infected porn, or steals copyrighted materials from P2P sites.

IE7 was not just an aesthetic change. It has significant and long overdue security fixes, default changes as well as essential security enhancements that alone justify upgrading - even if you use an alternative browser as your default browser. This is because Windows uses IE for some tasks, regardless the default browser set.

Next month marks 2 years since IE7's release. The problems a few people had at first have long been worked out. It is past the "wait and see" time. IE7 works and is available for download, or you can order the CD for a small shipping fee direct from the Microsoft IE website.

Oh, it has an excellent phish filter, add-on manager, pop-up blocker, and more. Oh, and tabs.

Then install the only plug in you need, IE7Pro, and you are good to go!

The same philosophy follows with XPSP3 (and Vista SP1). SP3 works and current on updates, has been painless for the vast majority of users. I am all for "wait and see" and therefore I NEVER auto-update anything. SP3 has been out for 5 months. It works - all my systems are current.

Although 10s, maybe 100s of millions of SP2 users successfully upgraded to SP3 via Windows Update, I prefer using the downloaded installation file. If downloading the SP3 installation file is not practical, you can also order the SP3 on CD. If you ever have to reinstall Windows using a previous version installation disk, installing SP3 immediately after ensures fewer, if any, hassles.

Downloads:

Windows XP Service Pack 3 Network Installation Package for IT Professionals and Developers
Windows XP Service Pack 3 Network - ISO-9660 CD Image File

Order CD

Windows XP Service Pack 3 on CD - Asia
Windows XP Service Pack 3 on CD - Europe and Africa
Windows XP Service Pack 3 on CD - North America - cost about $10 with shipping.
Windows XP Service Pack 3 on CD - South America

I DID have a firewall turned on.

They always tell you to disable firewalls and AV programs, I don't. Your AV and FW should play well with any program that does not have bad intent. If the installation fails, re-evaluate your need for that application. If still needed, download and save the install file, disconnect from the Internet/network, scan file for malware, disable FW, then install and bring FW back up.