all programs say not valid win32 application

I had a fake antivirus program installed "win 7 total security. I found it installed under my user/appdata/bwg.exe I removed the program and the popups and fake scanning went away. My current problem only exists for the user that had the fake program installed. Any program that was installed before the popup problem will not run wif a few exceptions. When I double ckick a program I get "xxxx is not a valid Win32 application." This also occurs with most options on the Control Panel

However if I select run as administrator all programs run fine. All programs also run fine under any other user.

I have downloaded several new programs and they install fine. Any existing file I have downloaded will not run.

Only programs that still run
cygwin
photo viewer

examples of things that will not run
ituenes
msconfig
MS Security Essentials
putty
chrome
IE
Mozilla

I have run spybot and it found nothing,
prevex
MS Security essintials.

It seems that the registry for this user is messed up.

Attached are the MGLogs.zip

Any thoughts on what to do would be helpful.