Odd EXE File Issue- Not Association Fix!

So I got a windows update on my windows 7 PC and after restarting it the next day I cannot run any .exe files except a few:
-Solitare
-Control panel
-Catlyst Control Center

If I try and run any other program I do not get any errors, it just does not open. I noticed that it does come up in the Processes in Task Manager but soon disappears. I attempted System Restore, and it had no effect. I've tried the .exe association fix, but that hasn't had any effect either. I tried running windows update and got:

Windows Update error FFFFFFFE

If you receive Windows Update error FFFFFFFE, it means that an update can't be installed because of a problem on your computer.

This problem is usually caused by a malware (malicious software) infection. To prevent your computer from becoming unstable, Windows won't install the update.

To solve this problem, we recommend that your reinstall Windows 7 using the Custom installation option and format the hard disk. Make sure to back up your files before you reinstall Windows 7. After the installation is complete, you can restore your files and install or reinstall an antivirus program.

Anyone have any ideas?

I can't run my antivirus :/

What security software do you have installed? Is it or are they current and active?

Worst case scenario, a complete reinstall of the OS.

Best case, the security software put a clamp-down due to its expiration.

Norton Security Suite, but it won't run now....

EDIT: While trying to run a soundtrack I got this error:

Server Execution Failed.

I'm attempting to get the CD running but the computer isnt booting off the disk, just waiting at the command prompt...

I used the .zip file, no luck. Any other solutions?