BleepingComputer.com: Removed old hp printer program...now have errors, missing .DLL file and FROZEN

I was preparing to update my uncle's pc from Win98 to WinXP...Started out backing up files and programs and then was going to do a complete pc backup, when I began to clean up old programs. I removed a handful of small unused software programs and the old printer (hp photosmart).

When I restarted... that is when all my problems started: it boots up, the desktop background pic is there, no icons, no START, nothing but error boxes.
1st pop-up error box titled
"Error Starting Program"
"A required .DLL file, MSVCRT.DLL, was not found."
"OK"

Then w/in a few seconds, a large white box pops up:
"Error loading Explorer.exe
You must reinstall Windows.
OK "

The 3rd and final error box titled:
(the windows flag logo) "Ashserv"
(a red circle w/ white 'X') "This program has performed an illegal operation
and will be shut down.
If the problem persists, contact the program vendor."
On the right 2 boxes: "Close" "Details>>"
If I Click on Details
"ASHSERV caused an invalid page fault in module KERNEL32.DLL
at 016f:bff8acl3" then several lines of numbers, letters, etc.

Once I close the illegal operation box, everything freezes, can't use mouse anymore. My only option, other then turning off is CTRL+ALT+DEL, this brings up 2-3 programs (varies b/w 1,2 or 3)
Msgsrv32 (Not Responding)
Mmtask
ashserv

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My problem: I never got my backups of My Documents, My Pics, and select programs, etc. There are lots & lots of family pics that can't be replaced!! This is why I'm afaraid to just go in and do a install/reinstall. I can't lose the pics / data
My ultimate goal is to install WinXP and then hopefully find updates/patches for some of the older programs to run on XP.

I've tried running in safe mode - no change other then it doesn't recognize my mouse at all.

PLEASE HELP ME!!!

THANK YOU SO MUCH IN ADVANCE FOR YOUR HELP!!!!

Jennifer