Question : STOP C0000135 {unable to locate component}

I have read over many of the responses here and have tried a few of them with little success. I am getting the following blue scree, just when it looks like it is ready to put up the XP login screen...

STOP: c0000135 {unable to Locate Component}
This application has failed to start bedause baseesvv32 was not found. Re-installing the application may fix this problem.

It will not boot into safe mode. I cannot find any reference to this file anywhere. I have tried manually going in and renaming the software and system files to .BAK and then copying them from the restore point. I have done an CHKDSK on the disk.

I had removed a few virus' from it on Saturday, most notibly the smitfraud virus. When complete, the system booted fine. I uninstalled the AVG free software and installed the newest, Version 8.0 and rebooted. All was good and was till this morning, when I rebooted again.

Any suggestions that may not include rebuilding windows XP? I suppose I could re-install over top of the existing one if needed?

Answer : STOP C0000135 {unable to locate component}

no problem if its all ship shape then please close choosing the answers you feel helped on the right hand side of teh comments above