Offline files Error

I have recently configured a new WINXP laptop. Everything works great except for two small items. The first is Offline Files. If I make a change to a file offline and then reconnect I get a message telling me to Close Open Files. There are no files open to my knowledge. When I click OK it will continue to sync the files correctly.

The second issue is more irritation than a problem. When I click the Start Menu, it continuously says there are new programs installed. No new programs have been installed. How can I get rid of that irritating pop-up balloon?

Thanks

K Harbaugh