I had a client PC recently that was badly infected with numerious viruses. After cleaning most of them, Windows XP finally booted back up but the desktop was missing. I could access task manager but could not run explorer.exe. REGEDIT.exe was also "Disabled by your administrator". The same thing showed up in Safe Mode. Finally, any .exe file I tried to run did not work.
After a little research I came across the following articles that were very helpful.