INT EXPL WONT LAUNCH BLANK AREA ON DSKTP

Hi,
I have a clients computer that wont launch IE 3.2. When I click on the IE Shortcut it begins to open and then stops. At this point It has a rectangle about 1/3 of the explorer window that you can see the desktop and the rest of the window for IE is gray. I am unable to use the file menu to make any selections. I had this system in my shop a month ago and did a full restore from the master restore disk from pb and the client said it worked fine until he installed a program from his company.It was a cd-rw with a good label called hometouch.

I have reinstalled windows with the restore disk from packard bell, installed explorer from another disk that had w95 and explorer v3.2, tried a different monitor same results.
Thank You