shorcuts from desktop and menus corrupted

[flyinggate]

Hi all,
I have a problem with xp that all shortcuts in either menu or desktop do not work. All associated Icons are also missing.
I can launch all programmes by using start, programmes, then right clicking the shortcut, properties, find target, as the correct .exe is always found.
Instead of seeing the word Shortcut in the Type of file: in the general tab I now have LNK FILE
All the shortcuts show a .lnk extension as part of their name either in the programme menu or on the desktop this goes for programmes that are part of windows such as notepad or programmes I have addded.
If I try to open in the normal way I get the message "windows cannot open this file", if I tell it the programme that created this file all other shortcuts then start to look for this .exe.
I have norton antivirus and firewall running and nothing has shown up. I have reloaded windows (but not reformated hard drive), removed the .lnk extension in folder file types, downloaded a programme that cleared the Icon cache.
Any help would be useful as although this is not terminal isit is a pain.
Best regards