How about your virus Scanner? Is it up to date? whas this problem happining before you updated the virus scanner. Running anything on your desktop or control panel requires Explorer.exe to make some moves. explorer.exe is a prime spot for Virus's to take affect.
Damaged NTKernal is very possible Before you try a NT recovery (reinstall of XP) Make double sure there are no virus's running on the computer. Even though your MSCONFIG is empty there are other means of programs and virus's to start. Have you ever used hijackthis? A good program to at least show whats goign on.. Search for it on the internet "hijackthis"
Its a clean program that display's EVERYTHING that your computer is doing. When you run it choose to save a log file. Email me or comment on here and Past the log file here. This will give myself a great amount of information about if there is a bug moveing around in there. Nothing in this log is information about yourself or about your computer. Its just what files are running and where. Please do not make any changes or fix items in this program without asking about the item your trying to get ride of. Oh By the way. Please run this in Safe Mode the first time. That way there is no bugs running while your working on this problem.
Craig