A friend has two issues that started up at the same time on a new, 3 week old computer, running XP. First of all, when she views images from her My Pictures folder they are fine, but images on the web are pixelated or have that "jpeg blur". Second, when she closes out IE windows she gets an error that says something to the effect of "cwnd session error". I think she is running IE6, I could be wrong.
Her computer was scanned with Nortons, Spybot and Adaware. Other than your typical tracking cookies, there was nothing. She doesn't have any P2P software or toolbars from any site installed.
Moderator Edit: Moved topic to more appropriate forum. ~ Animal