Noted exceptions: Outlook and IE will both run from the Start Menu shortcuts but will not launch from desktop shortcuts, QuickLaunch or from Windows Explorer.
The inability to run .exe files is limited to the user profile that was involved with the original infection. Administrator does not have any problems at all with executables.
I tried a couple of things I found in on this site and on the Microsoft support site.
1. While logged in as Administrator, I went to the file types dialogue to make sure that EXE files were associated with Applications. EXE does not actually appear in the list of registered file types though when I click "New" and try to create a new association for EXE, it says it is already registered with the file type Application. I tried repeating this while logged into the buggy profile but all options in the dialogue are grayed out. Again, EXE is not in the list of registered file types.
2. Then I went to regedit and looked up the exefile/shell/open/command key. The string is "%1" %* which is what it's supposed to be I believe. This is true when I go into regedit as either Admin or as the buggy user.
Thinking that a lingering infection might be at work, I attempted to reboot into Safe Mode. Unfortunately, no Safe Mode options are available in the boot menu. I have posted about this issue separately.
Thank you for your help with my exe problem! The user has found some workarounds to open documents and the like but is not able to run other work apps and that is no good.
Edited by JennhatesPCs, 10 December 2010 - 06:53 PM.