Internet Explorer settings problem

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Hello,
I write here for the first time because of a problem in Internet Explorer 7 (Windows Vista Ultimate OS).
After a normal startup I started Internet Explorer but it was unusually slow and it was freezing and unfreezing as loading the homepage. I also noticed that all it loaded was the HTML and pictures. ShockWave Flash and similar other content don't even get loaded. If I try to download a file Internet Explorer just reports "Cannot connect to server" or "Cannot download file". I have 1mbps ADSL and it works fine on my dad's laptop.
I made a System Restore, full system antivirus scan with Kaspersky Internet Security and full antispyware scan using Webroot Spy Sweeper. Spy Sweeper found an Internet Explorer hijacker and removed it but it didn't help.
Later I found out something odd in Internet Explorer settings:

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As you can see disk space to use is set to 0 and temporrary folder adress is not shown
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If I try to set the number to higher value I get that error seen above.

Restarting Internet Explorer settings doesn't help either.
I tried a lot of things and nothing solved the problem. If any other info is required I'll provide it, just to solve this annoying problem because I work a lot on Internet.
Thanx in advance!
 
select a location for the Temporary Internet Files; ususally it's
\Docs & Settings\yourlogin\Local Settings\Temporary Internet Files

THEN set the size

CP->Internet Options is the usual means to control this, but I'm still on XP (thank God)
 
If I try to set the location I get:
"There won't be enough space in the new location for the currently downloaded content.
Please either delete these files first and try again, reduce the size of the folder, or pick another location."
There are 39GB of free space on C:\ drive.

Vista was working without any problem since February, when I've got it, this is the first issue that occured.

Edit:
I have solved the problem by deleting the Temporarry Internet Files folder. Internet Explorer created a new one and all was fine again.
Thanx for your attempt to help.
 
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