I have never seen anything like this, a friend installed IE9 and when he rebooted all his files were gone. After some poking around I found they were all moved into System 32 (C:\Windows\System32\config\systemprofile). His desktop also errors up every time you click it and he can't change the background picture. I tried a system restore, but there are no restore points!
I don't have access to the computer right now, but if you could tell me what to try tomorrow when I do have access that would be great!