Windows Explorer has encountered a problem and needs to close - ntdll.dll

This all started to happen soon after I upgraded my Dell Latitude D600 (XP Pro) with an Internal DVD-RW from Dell.

 

Whenever I navigate in Windows Explorer (or attach a file in an email) I get the following error:

 

Windows Explorer has encountered a problem and needs to close.

Details:

AppName: explorer.exe  AppVer: 6.0.2900.2180  ModName: ntdll.dll
ModVer: 5.1.2600.2180  Offset: 000106c3

 

It will happen every time if I go to a subdirectory 8 levels in as soon as I click on that subdirectory and it starts to list the files - the error pops up and Explorer restarts closing whatever I am in at the time.

 

I have tried everything I can think of, including a reparative install of Windows XP Pro. I have run sfc /scannow. I try to do regsvr32 ntdll.dll and I get the following error:

 

ntdll.dll was loaded, but the DllRegisterServer entry point was not found. The file can not be registered.

 

I have run Ad Aware SE, SpySweeper and Spybot (and even a TDS-3 full system scan). Spyware/virus is not the problem. Caches/temps are cleared, she defrags fine. This is a Dell Latitude 600m 1.6GHz 768MB.

 

Any help would be appreciated.