Your Windows installation is heavily damaged.
The SFC shows only 13 POQ sets - there should be at least 60 in a 32-bit installation, and its til lmanaged to find 6 file errors which it couldn't fix properly because of access denied errors.
It's likely that your only sensible option is going to be a reformat and reinstall.
Let's try another tool first and see if that either helps, or gives us more information...
Please run the CheckSUR tool from http://support.microsoft.com/kb/947821
(you'll need to look in the details for Method 2)
Then zip the CheckSUR.log and upload it to your public SkyDrive so I can take a look - post a link in your reply.
The tool can take anywhere from 5 mins to a couple of hours to run (or 'Install') depending on how much it has to do, and may exit silently - it may appear to freeze for most of that time, but be patient.