Thanks for the link on the HP Recovery. After I finished installing everything last night, I downloaded the service pak from MS. It took about 3 1/2 hrs.
This morning after all was said and done, I started elements to see if it was still ok. NOPE!
Everything is working: fonts, menues, etc, but now when I open a picture, the background has the woven texture like the paper I last restored a photo on. I had clicked the color picker on this paper to get a matching background fill. This just wont work.
So, here I set again today trying to figure this out. It is not in the image files, because when I open the images in Photoimpact, the pictures are in good condition.