Programs Refuse to Run. Explorer Hangs on any interaction.

I installed windows 7 3 days ago and its been working fantastically as a replacement for windows vista.

Today however windows 7 starts misbehaving. The toolbar, windows anything managed by "explorer.exe" refuses to work. It hangs for about 10-20 minutes before doing the action you requested.

The only thing that has changed is that i installed microsoft office,a directx update and tortoise svn.

To attempt to fix this i tried my usual procedure of restarting explorer.exe however task manager will not run. In fact no process will run. It appears in the task manager(when and if task manager works) in the process list but i cannot end it due to a "lack of privileges"(i cannot remember the exact message as ive only got task manager working once).

Asuming it to be a program running or perhaps a virus i then rebooted to safe mode which i am in right now. The odd thing is that everything works correctly. I minimized the ammount of programs on the startup list and tried running windows again in normal mode. The same problem occured. I returned to safe mode and checked my drivers. To my knowledge they are all up to date.

I tried restoring to the day i got windows 7 installed. The same problem occurs. This suggests hardware to me but that makes no sense because everything is working in safe mode.

I am attaching a directxdiag file that was made a few days ago when my computer actually worked.

I have no idea what to do about this problem and fixing it is impossible in windows when it is not running in safe mode.

I assume its something that is running but cannot even get to you a list of things that are running.

Do you have any idea on what i can do?

I have the same problem! bump for help!