Glad it helped someone. OK, it's official. The problem is my anti-virus sw, more specifically
a Panda Titanium service. I loaded the computer from a cold and warm boot only with the Microsot services from
msconfig, Windowblinds loads up fine. Started loading up with the Panda Anti-virus services one by one and when I got to the final one named Panda
TPSrv I received the same problem of the toolbar, etc. looking like Windows 95. I tried disabling heuristic scanning and similar services but it just won't load with that service on at all. Guess it's time too look for another anti-virus.