I found it!!!!!!!
Although I turned off ALL Microsoft Updates and I was only manually updating one at a time restarting each time, as I was troubleshooting an IE8 lagg issue posted here in the forums. Well, it turns out Microsoft installed 3 updates with out me allowing it. They installed:
2 x Windows Update-critical update and
1 x Microsoft Visual C++ 2005 Redistributal.
I did a system restore point to before these installs and everything is working like a charm again! ....Go figure......Now I will pinpoint which one it exactly was.....
Thanks for everyone's help!!!!