To resolve this go to DUN and change the view to large icons. It is a problem with the Active Desktop component.
If this fails remove active desktop.
To remove Windows Desktop Update, follow these steps:
Click Start, point to Settings, click Control Panel, and then double- click Add/Remove Programs.
Click the Install/Uninstall tab, click Microsoft Internet Explorer 4.0 in the list of installed programs, and then click Add/Remove.
Click "Remove Windows Desktop Update, but keep the Internet Explorer 4.0 Web browser," and then click OK.
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