SP-2 is pobably the culprit. This new malware can control a registry and steps have been taken to prevent that. But they should make sys restore bypass the security. I guess they never thought of it or saw it as another opening.
Thank you all for your advice.
I have learned a LOT and have had a BUNCH of fun!
I am most certainly going to back up ALL my files so I won't be scared of a cold install again. (I probably should do one every so often, right?)
I owe each and every one of you for holding my hand, so if we run into each other on a thread and I'm being nasty, just remind me and I'll lay off! :-)