Sounds like your OS is corrupted. You can use your Compaq Restore disk to do a repair which will re-install everything fresh. You may have to redo all your MS updates because repair usually makes everything as original install.
Also you may want to make sure your virus definitions are current and running weekly, and download spyblaster and spybot search to make sure you haven't been loaded up with spyware programs. Both programs can be found at
http://www.webattack.com in the freeware section.
Also have you tried to use the restore option and go back to a time when everything was working fine. If you don't have the restore option turned off you can try this also.