Ok well I solved the problem myself and here's the solution.
First off due to this f***ked up installtion I have to completely clean my
system and start from scratch since my comp could not get past the "Loading
personal settings" screen.
But before this I found that though I could not delete the dll file I COULD
rename, very weird to me since if I could not delete it I also should not
have been able to rename but hey the MS for you.
So anyway, this is what I did (all you should have to do is rename the
pchsvc.dll to pchsvc.old and then do the install assuming your computer is
booting up fine) repartitioned/reformatted the drive so I started completely
clean, installed WinXP, rename the damned file, installed SP2... so far no
problems are rearing their ugly heads but then I have only reinstalled my
email client (Outlook what?) and Trillian... will install more tomorrow and
see how things go