To get rid of that active desktop recovery thing disable your Active Desktop. You really don't need it. Go to Display Properties, Desktop, Customize Desktop, Web and uncheck all the items in that list and then apply all settings.
I've seen Outlook Express not being able to delete files because the temp folder is too full. Go to Start, Run and execute cmd or command.
Type the command:rd /Q/S %temp% to delete the Temp folder with all its contents really fast. Then type md %temp% to recreate an empty temp directory.
Lets see if that makes things better.