Vista Storage and Memory Issue

Hello Everyone,

I have an interesting problem. I have upgraded my office computer from Win XP to Vista Enterprise. After doing this, I did not have many problems, but now seem to be having a huge issue. I tried to install Microsoft Money 2007, but it was throwing some errors. Long story short, Microsoft Tech Support did a few things remotely and now I can barely use the computer. (And I am not about to wait on hold and go through all that mess again). I am unable to open applications, and 2/3rds of the Control and System functions do not work in Normal or Safe Mode. Most services will not start. I am intrigued because when I try to open an application such as Office or even install/uninstall anything, I get the message: Not Enough Storage is available to complete this operation: 0x8007000E. Upon many hours of searching online, I have not found any answers. There was mention of a hotfix for this, and I attempted to install, but alas, same error. I cannot view any Windows Updates, as that was my first thought on this issue. I have already cleared Offline Files, System Restore and Shadow Copy (at least I tried to but I don't think that it worked). I have tried running as a local user and as Administrator. Neither account seems to be better than the other. AVG Virus Scan shows nadda, as well as Anti Spyware showing nothing. Another side note; after this started, my C Drive, seemed to fill up very quickly. It was almost maxed out, and this is very unusual as I store most of my information off on externals. I have run the Windows Mem Test and Checkdisk with no errors in either. I also ran PC-SMART test on the mainboard, memory, hard drives, and CPU, all passed with flying colors. Again, this issue has only cropped up in the past few days.
Is there any help out there for someone stuck in this situation? Thanks in advance.

Computer Specs:

Gateway, P4, 2.8Ghz with 1.5GB of RAM. 2 Hard Drives, Primary 320 GB, with at least 35 GB free, used to have over 100GB Free, Secondary Drive 120 with 50GB Free.

Thanks again,

Marc