window explorer open file from 3rd party software

I have XP Professional SP 2 with Radeon X800XT video card.
In the past 3 days I am having problem opening file from Photoshop 7 using
"File->Open". I get to the directory where my file is and the software
disappears without error messages. Also if I have window explorer opened but
minimized and working in either Photoshop or Creator the system come up with
window explorer failed and does a reset of sort. Reset meaning explorer
disappears and a warning saying my system is not protected by a firewall,
which normally appears after restarting or booting up the system. The
Creator and Photoshop are still up and running when explorer fails. I
removed update KB900985, but had the same problem so I reinstalled the patch.
I recently installed the "Window Genuine Advantage Notication (KB905474)" at
the same time as KB900985, could the problem be from these two patches?