I uninstalled IE7 and got some functionality with the browser, restore and the computer management. Right click didn't work on the browser, restoring didn't help, details in event viewer were unavailable, couldn't run ActiveX on support pages.
I eventually couldn't boot XP Home SP2 (corrupted registry) and had to move backup registry hives and restore further back in safe mode. (I didn't have everything backed up and I hate to lose anything.) After that I still had less than expected use of the system and prepared for a reformat. Services failure outside of WindowsScriptHost 5.6?
2 warnings though. 1) The Microsoft File and Settings Transfer Wizard has a history of being an unreliable way to back up and restore anything (KB30769.) I lost everything that wasn't otherwise backed up. I had the latest updates and sometimes there is no warning that the created files are useless or corrupted. No warnings and almost no way of recovering the files. More horror and a glimmer of hope on the net. 2) The KB article for moving registry hives (KB822705 & KB322756) with the Recovery console isn't quite right for some OEM's (like HP)due to the name of at least 1 earlier registry section copy having a different name. There are 5 sections with distinct names. SYSTEM and SAM are 2 of them. There are also batch scripts that can be made with notepad and a 6-floppy disk Recovery Console image source in MS Support. I had to manually download the authentication software and type in a return code to auqire the mandatory MS Genuine Authentication to download the disk creator. SP1 bootable disks/CDs don't work on SP2 NTFS partitions.
This was a straight 30 hour marathon with backups, floppies, a second computer, and a patient spouse who catered to me. Best of luck to everyone struggling with similar issues. Back up sooner rather than later if you can't replace your data.