Windows XP boots to the wallpaper and then stops. No icons or taskbar. I have ran numerous spy and virus scans with no luck. Here is my Hijack
This log

Try to replace the Motherboard battery (3v) and set the current date and time from BIOS settings then start windows.
let me know what happens then..

Thanks Thunder, although the battery is not very old I will try.

also check the file named explorer.exe (windows shell) located in windows folder or not.

There are 12 explorer.exe's and their locations

C:\WINDOWS
C:\WINDOWS\$NtuNINSTALLKB820291$
C:\WINDOWS\$NtuNINSTALLKB938828$
C:\WINDOWS\PREFETCH
C:\DOCUMENTS AND SETTINGS\MYNAME\LOCAL SETTINGS\TEMPNER9660074D.CAB
C:\DOCUMENTS AND SETTINGS\MYNAME\LOCAL SETTINGS\TEMPNER9B134DC8.CAB
C:\DOCUMENTS AND SETTINGS\MYNAME\LOCAL SETTINGS\TEMPNERAOD9074D.CAB
C:\DOCUMENTS AND SETTINGS\MYNAME\LOCAL SETTINGS\TEMPNERA58C4DC8.CAB
C:\WINDOWS\$HF_MIG$\KB938828\SPQFE
C:WINDOWS\OPTIONS\INSTALL\WIN_16.CAB
C:\WINDOWS\SOFTWAREDISTRIBUTION\DOWNLOAD\44D74C37F0595A363BCEC5E9229D8564\SP2GDR
C:\WINDOWS\SOFTWAREDISTRIBUTION\DOWNLOAD\44D74C37F0595A363BCEC5E9229D8564\SP2GDR
C:\WINDOWS\RESOURCES\THEMES\BLEWOUT\THEME\BLEWOUT

Also replaced the battery

ohh 12 explorer.exe files ! it look like that some maliciuos process is blocking windows shell to start, please ensure you have checked with latest virus scan definition installed in your virus scan program.