BleepingComputer.com: Windows Explorer error message

Suddenly in the past few days, I have received a message "Windows Explorer has encountered a problem and needs to close" about 30 seconds after my XP machine boots up. It keeps popping up afer I close the pop up and it keeps going round in a loop.
One time it stopped and I was able to get into my AOL browser to get on-line but last night it would not let me connect to any internet browser.
When my machine boot up I normally get my modem (I use AOL broadband) green light in my task bar and this show me if I am connected ok. What happened here is after this windows explorer error message popped up and then disappeared my modem green light in my task bar disappeared and it would now allow me to use any browser although I was actually connected to AOL broadband.
How do I fix this windows explorer error message?
Is it related to Internet Explorer 7 in any way?
I am unable to select any date using system restore even on safe mode as my next button does appear even if I click on a date and I have no previous date to select.
I am stuck and need some advice.
thanks

What is new or different since the last time everything worked properly (ie, new hw, new sw, virus, error, etc)?

Does the system work normally in safe mode?

Have you done a full system scan with BOTH your anti virus app and with MalwareBytes?