Explorer error message.

I get this error message when I right click on my desktop “Windows Explorer has encountered a problem and needs to close. We are sorry for the convenience”. The dll listed is msvcrt.dll. I ran the Windows XP repair utility (reinstall really) which didn’t work, then I completed formatted my pc with a clean copy of XP and it still does it. How can I fix this? Please don’t tell me to wait until SP2 comes out.