The problem lies with a piece of spyware called windows systen alerts. In the add remove programs, you will find this listed without a manufacturer. If it really were from microsoft it would jave microsoft corp written beside it.
To access the add/remove while the computer is inoperable:
boot machine, when it finishes booting and the loop begins, press ctrl+alt+del and click task manager.
go to the processes tab and end task on explorer.
go back to applications and click new task
type C:\
then click in the address bar, "Computer"
click unistall programs, and click on the windows safety alerts that DOES NOT have microsoft corp beside it.
It will tell you that the computer needs to be rebooted before the uninstallation and you must close all open applications. DO NOT click the close button on that window.
Hit the X in the corner of the control panel and wait for the computer to restart. When it finshes booting, no more windows explorer errors.
Hope this helps.