UPDATE Issues resolved. The windows logon ui seemed to negate any work done by antivirus programs. I simply renamed the file to exold from exe and haven't had a problem since.
Bad image errors resolved by paying attention to the name & location of the dll file. I went to my other xp pc and searched for that file and copied it from the exact folder referenced in the error since there were two copies of that file on the pc in different folders. Went back to the problem computer and first copied the referenced dll file and saved it to another hard drive just in case I really messed things up. Then I inserted my flash that contained the dll file from my other PC and copied and pasted it to the folder it was supposed to be in. I don't have those Bad Image errors anymore.
Below is what I first posted before resolving the issues:
It looks like I have a virus.. Things haven't looked the same since March 31, 2009. I get a series of bad image errors. Some programs work and some don't. Regardless of the program, I get a bad image error box referencing the applicatoin or DLL c;|windows|system32\sensapi.dll is not a valid windows image. Please check this against your diskette.
I have found some Trojans when running Super AntiSpyware, but I receive a windows logon ui error or the screen will go Blue (NOT A BLUE SCREEN of DEATH) and the only option is to power off.
Any attempt to download patches from Microsof windows update is negated by the inability to Install Active X.
I have run AVG and McAfee, but I only installed it after noticing that there was a problem.
I have tried running vundo fix in safe mode, but I wrestle away from this new boot up in windows xp. Before on April 1st, I would get a startup screen showing both admin users. Now the startup has one of the main users and I can only click ok.
Help and assistance is appreciated.