I used system restore and went back to my set up before I downloaded SP3 and I believe that means that the SP3 updates are not running now . When I go into safe mode I have the same problems - cannot access My Computer, My documents, control panel etc. I figured I had a virus and ran the spyware tools.
Right now I do not know for sure if this is an SP3 related problem or a virus issue and not sure what top stickies I should follow.