Thanks for all your replies
Just managed to fix it, lunchtime Friday. Got all messed up yesterday with the bloody terrorists bombings in London
Searching thru the registry and looking for anything related to system32 I found this:-
HKLM\Software\Microsoft\WindowsNT\CurrentVersion\Winlogon\Shell REG_SZ Explorer.exe C:\Windows\System32
Deleting that key has cured the problem
Thanks again
/hobferret