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[ejhonda]

I just happened to run Windows Update this morning on my well-maintained Windows XP system.  It picked up KB977165 as the sole missing update, which I installed.  After the installation, I delayed the reboot several times while I worked on somethings.  After about 6 or so deferrals of the reboot process, I finally decided to allow it to reboot.  At the point I started to shut down programs, I noticed my Taskbar, which typically sits vertically on the right hand side of my screen, suddenly was very narrow - only wide enough to display one icon width-wise in the system tray.  I tried to grab the edge of the Taskbar and drag it back out to normal width (about 4 icons wide in the system tray), but it wouldn't budge (yep, made sure it wasn't locked).  So I decided this may behave once I rebooted.

I rebooted, and after I logged onto the system, my Taskbar was now only a sliver of gray on the right hand side of the screen, with nothing denoting a Start button or a system tray.  I could right click on it, and get a menu, but that was about it.  No way to access the Start menu, Control Panel, etc.  An error message also popped up before the Desktop fully revealed itself:

Microsoft Visual C++ Runtime Library Runtime Error:  
Program: ...es\Common Files\Roxio Shared\SharedCom8\RoxWatchTray.exe
This application has requested the runtime to terminate it in an unusual way.  Please contact the application's support team for more information.

I found many references to BSoD's caused by KB977165, but nothing like what I'm seeing referring the Roxio Tray Watch executable.  I ended up attempting a reinstall of Windows XP from CD, which seemed to resolve the issue, until I began installing Windows Updates again.  This time, I still have a functioning Taskbar, but the C++ Runtime error message reappeared once SP2 was installed.  Any ideas as to whether this would fit the malware issue or is something completely different?

Win XP
Roxio RecordNow Premier version 3.0.0, Build 3.1.1a; PX Engine 4.0.36a, 9; RecordNow Audio v3.0.0 bld 300B86B; Copy 3.0.0 bld 300B69A; Data 3.0.0 bld 300B65A, Tools 3.0.0 bld 300B55A; EasyArchive 3.1.0

Security in place includes Linksys router firewall, eEye Blink Personal 4.6.0 (Security Suite), and Firefox 3.6 w/ NoScript add-on.

[gi7omy]

It sounds like a MS update has knocked it out of action, but actually if you run msconfig and deselect it from auto-loading, that will kill the message (it only catalogues your media files anyway and isn't critical)