Can you get into safe mode (F8 on startup)? I would try this first. If you can, then I would uninstall IE and run an SFC. You can do this by getting to the MSDOS prompt (on Programs menu) and typing "SFC /now". You will need your install disk. This will find any corrupt or missing system files and replace them from the install CD.

You can also do this outside of safe mode (if unable to get into Safe Mode).

If all else fails, you are probably going to have to reinstall the operating system. Might I suggest that this is a good oportunity to upgrade to XP?

The error message you provided is not specific and is unknown to me. This types of error messages are usually associated with others that you are getting.

Hope I helped a little.