After a lot of hassle, I managed to copy my corrupted profile to a new account.
However, I encounter the SAME explorer.exe problems there. It won't save or apply ANY of my chances, whether it's to folder options, taskbar settings, notification area, ANYTHING.
I can't use it like that :P
And I noticed that when you right-click on the blank area of a folder/desktop, and go to the "New" context menu, it's BLANK. No more new FOLDER, or SHORTCUT, it's all gone