Dozens of instances of dwwin.exe and drwtsn.exe locking up system

I have a problem that started recently that has me stumped. Nothing has changed on the system except for the installation of a webcam and windows movie maker, which I’ve since uninstalled. Also, Software Distribution Service 2.0 apparently installed itself (See it in system restore). Basically the system will be running along, and all of a sudden it will start acting sluggishly and programs will not open. Occasionally on boot up I’ll get this error:

Windows Logon UI encountered a problem and needed to close.

After the sluggishness inevitably begins, there will be dozens of dwwin.exe and drwtsn32.exe instances in task manager. Shutting them down will sometimes yield these dialog boxes:

DrWatson Portmortem Debugger has encountered a problem and needs to close.
Windows Search Protocol Host Has encountered a problem
MS Windows Search filter host has encountered a problem

I cannot start new programs. I’ve also tried rebooting, then immediately doing a system restore, but System Restore just tells me it was unable to restore and no changes were made.

The only constant error I’m getting is the logon ui and the MS Search. I’ve tried uninstalling and reinstalling Windows Desktop Search to no effect. Chkdsk /r revealed nothing wrong with the hard drive. Having Outlook 2007 B2TR running seems to accelerate the occurrence of the problem, but the problem still occurs even if outlook isn’t running.

I’m attaching my hijack this log and the logs from the event viewer, but I haven’t figured out what is wrong. Any help or suggestions would be hugely appreciated.

-----------HIJACKTHIS-------------------------------------------

• Edit by bjgarrick: Unrequested, Inline HJT log removed!