I realized I forgot to mention that it is running SP1 and I haven't been able to use windows update because the update software doesn't finish loading. That also goes for running scans from trendmicro and pandasoftware, or any installer using activeX controlers.
I have now tried reseting the registry permissions for administrators as I did in order to get Windows AntiSpyware installed (which had been on the local machine section) only this time I performed it on the section that contained the file I was denied access to, hkey_classes_root. Now it won't finish starting up including under safe mode.
I can still work with most of the registry (haven't found the hkey_classes_root that macthes with what I had been working on) using a bartpe disk that I have been building.
Another note is that I had tried to connect the HD to another machine to backup data but it would crash the other computer at the login screen.
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If you have not resolved this issue please start a new topic,
Thanks
Don