IE has encountered a problem and needs to close

A friend has a problem trying to use IE.. When it first came up the Home Page was a MSN page which she didn't want.. She changed the Home Page to Blank Page but when she attempts to open IE, the report notice to Microsoft pops up and she can't open IE.. I did a restore and it worked with the MSN Home Page but again, when I changed it to Blank Page the same thing occurred.. Now it won't open at all.. She is using WinXP Home and she has Service Pack 2 installed.. This happened before SP-2..

My computer is having a similar problem.. I can't open IE from an e-mail link.. When I try, I get the subject message and can't open IE.. I found that if I open IE and minimize it, then when I click on a link, IE will open a second browser window and it works okay.. If I forget to open IE first, then I get the "IE has encountered a problem and needs to close"..

I did a check with Spybot and Adware and I'm clean.. Here is my Hijack This..
Anything I should do to correct the problem?

Thanks..
[Log Removed -Kodo]

 

if you're concerned about spyware please read through and peform all tasks in the following thread.

http://forums.majorgeeks.com/showthread.php?t=35407
READ ME FIRST: Basic Spyware, Trojan And Virus Removal

You'll need to update your copy of HiJackThis. http://www.majorgeeks.com/download3155.html

and then follow this thread for our instructions

http://forums.majorgeeks.com/showthread.php?t=38752
Hijack This Tutorial And How To Post Your Log File