Richard, I appreciate your posting all of the information. I have done all the information you have provided with the exception of a restore from my original CD's. I have not tried a system restore yet, because I need to pin point the day it actually started occuring. I was unable to run the sfc /scannow at the command prompt, although I was logged in as the administrator it said I was not. I attempted to run the windows update agent again, and it failed with "Windows Update Agent Installer Encountered Unrecoverable Error". I downloaded Service Pack 1 as one of the suggestions, but it will not let you install Service Pack one, once it has already been installed. I went to the control panel under programs to try and un-install it, but it does not show up under programs and features. I also went to Windows Update, and under Update History and view, it only shows one entry:
"Hotfix for Windows (KB947821) Installation date: 2/13/2011 10:20 AM Installation status: Successful
Update type: Important Fix for KB947821 More information: Description of the System Update Readiness Tool for Windows Vista, for Windows Server 2008, for Windows 7, and for Windows Server 2008 R2
Help and Support: Microsoft Support
So I would suspect after running all of these programs and fixes that I ran, it zeroed out all the fixes that were previously installed on to the system including Service Pack # 1 and Service Pack # 2, unless I am looking in the wrong place to remove them. One if the items I ran, stated to re-install Service Pack 1 after running a specifc job, obviously I can't fo that. I guess I could try re-installing Internet Explorer 8 on top of itself, to see if that corrects the problem also.