Everything is more or less fine now. The problem was caused by a couple of Trojans that were being called differently than I've seen in the past. Once that was clear, it was a pretty straightforward affair to get things working again. I've never seen a Trojan use the Explorer (desktop) Policies portion of the registry like that. It's probably commonplace these days, but I'm out of practice. Once I removed the trojans (and got better sensations as a result), I removed some old apps, cleaned the registry, defragged the drive, updated the system, and it's been running fine ever since. The PC needs more memory though. 256mb for an XP machine is bare minimum IMO.
BenW, I have never had such problems with my PCs that I felt the need to use a "throwaway" for Internet use. I use a moderately tightened Win2K system sitting behind hardware and software firewalls. I've never had an actual infection. Norton's caught a few attempts, as has Zonealarm, but nothing's every taken hold. I use Firefox, but mainly for the tabbed browsing.
I use Linux, but only on my personal server and that's mainly because I'm too cheap to buy a copy of Win2003 Server.
Chris