WindowBlinds is the culprit here. Just get rid of it, there are many third party themes you can use without having such a horrible piece of software on your PC. You can find themes on deviantART
and most of them can work without making changes to the system files. As far as my knowledge goes, WindowBlinds doesn't rely on Aero but users produce their own "glass effects", that's probably the reason Aero doesn't work anymore.