Windows XP boots up but can't run programs or access hard drive

Hello,
I have a new problem and not sure where to start. My Windows XP PC locked up yesterday, without the BSOD. I unplugged it and re-booted. Windows starts normally, however when I click on My Computer to access drives, I get the Windows hourglass and can't get the icons for my C Drive, external hard drive or DVD drives to appear.

My desktop appears and I can access the Recycle Bin and My Documents folder. But if I try to access My Computer from these folders, the PC freezes. I also can not run IE or any programs. because the PC freezes again. I don't think I got a virus. I'm able to see what's running and nothing out of the ordinary shows up. Any ideas where to start?
Thanks
 
You are correct Tmagic. It was malware. I never had anything like that before. I ran Malwarebytes from Safe Mode and it deleted 2 files.

After that I re-booted and everything seems fine.

Thanks so much for your reply!
 
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