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Well I finally found on my own what the problem was. There were 4 Java based Rootkits on my system. I am guessing that at least one of them was coded to start around the 1st of January. Removing the rootkits only solved the issue with the services resetting. After this all my software claimed that the sound card was being used by another source even though nothing recognizable was using it. So the final thing to occur which would have saved time to begin with was to reinstall everything from XP up.
Two days ago while cleaning my main keyboard I attached a cheap secondary board so my 4yr old could play games. Upon boot I received several error beep codes. Placing the original keyboard back on the system stopped the error beeps but to my surprise all but 3 of my services were turned off. I then went into services.msc and set the ones I wanted to Auto or Manual (fortunately I keep a list). Everything went fine even after a normal restart. I surfed the web, ran Windows Media Player 11 and listened to about 10 songs. Played some online stuff, offline stuff.....everything seemed back to normal. The next morning when I turned on the system for my 4yr old I noticed the themes were gone again. Quickly checking Control Panel showed me the same blank screen as before so I ran services.msc again and guess what, the same three services were running (enough to let the system stay on) and everything else was back to disable mode. I have Googled the tar out of this one and have had no luck yet. I am at this point in the process of creating a batch file simply for the purpose of setting them back to normal each time I turn the system on. Untill I find a solution this is the best I can do. Any help would be greatly appreciated. System specs - Windows XP Pro SP2 AsRock 775V88+ MB Intel Pent4 3.5 GHz 4 GB Ram 330 Total GB HD (WD 2500KS Caviar SE16 250GB on SATA, WD Caviar SEWD800JB 80GB on PATA) All-In-Wonder X800 Sound Blaster Audigy MadDog 16x DVD9-8x Samsung 48x CD-R/RW Onboard VIA Rhine II Fast Ethernet