Try reinstalling Internet Explorer.
http://support.microsoft.com/kb/318378
I know that your problem is with Explorer.exe but the two programs are
hopelessly intertwined, like the Gordian knot. Corrupt or mismatched IE
files often cause the type of problems that you are experiencing.
Also, there is a similar issue affecting Windows 2000 when Internet
Relay Chat (mIRC) program is installed. I don't know if the same issue
affects Windows XP but it might be something to look into if you use
these types of programs.
http://support.microsoft.com/kb/836417
John
Henry wrote:
> Just to update the situation ...
>
> I created a new user through the "net user" command line and then logged
> into that new account (to see whether it's the user profile that is corrupt).
> The result is still the same. Blank desktop with no icons and taskbar for
> that new account.
>
> Any more idea?