dr watson debugger

I'm having problems with my computer. When ever I try to open my computer or any folder that I have on my desk top they wouldn't open. The desktop icons disappears for a second then returns. I get the Dr Watson message and the computer freeze up. I have ran a bunch of spyware and virus programs and this still happens. The computer operates in the safe mode just fine. The message I'm getting is:
Event Type BEX p1:drwtsn 32.exe P2:5.1.2600.0 P3:3b7b84a2 P4 dbghelp.dll P5: 5.1.2600.2180 P6:4110969a P7: 0001295d P8: 0000409 P9:00000000

C:\Docume~1\user\locals~1\Temp\wer6b87.dir00\drwtsn32ex.mdmp
C:\Docume~1\user\locals~1\Temp\wer6b87.dir00\appcompat.txt

I have even going into the safe mode and removed sp2 and the dr watson.

I hope somebody can help me. If not I think the only other choice I have is a reinstall of XP.

Thanks Jeff