This error appears to be an XP theme problem, specifically a problem with the file shellstyle.dll which is used by most visual styles. Try choosing a WIndows XP theme to see if this solves the problem.
SFC /Scannow may work.
Sounds like you are running SP1.
Are you running Style XP?
The file C;\Windows\system32\UxTheme.dll could also be the problem.
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