I don't think there is anything wrong with your shlwapi.dll file because:
If the c:\windows\system32\shlwapi.dll file is missing, you will see messages like this:
winlogon.exe - Unable To Locate Component
This application has failed to start because SHLWAPI.dll was not found. Re-installing the application may fix this problem.
When you click OK your system will just restart (after thinking about it for a little bit).
If the c:\windows\system32\shlwapi.dll file is corrupted, you will see messages like this:
winlogon.exe.exe - Bad Image
The application or DLL C:\WINDOWS\system32\SHLWAPI.dll is not a valid Windows image. Please check this against your installation diskette.
When you click OK your system will just restart (after thinking about it for a little bit).
I think your problem is with Windows Live (wloobe.exe). It is looking for some funcion or procedure in the shlwapi.dll file and not finding it, so it is complaining.
Have you been using WL for a while and this just started happening?
Have you upgraded or made any changes to your WL installation lately?
I will not be installing Windows Live to try to figure it out since I have no use for it. I looked at it but it looks to messy for me!
You could get into msconfig and temporarily disable anything to do with Windows Live and see how things look. If things look okay, then I would think about reinstalling Windows Live or see if they have their own message forums.
If you ran sfc /scannow and see a message like this:
Files that are required for Windows to run properly must be copied to the DLL cache.
Insert your Windows XP Professional Service Pack 3 CD now.
That does not mean you have missing or corrupted files.
That means that SFC is trying to compare the current files on your system against a "good" source of files and that would be your genuine bootable MCE SP3 installation CD, which I doubt you have - unless by some miracle it came with your system or you made
it yourself. The Support Engineers never seem to think about this when they offer this advice which will not help you anyway.
Even if SFC finds something to do, you will not know about it or what it did since the results in the system log when it finds nothing to do is the same as the results when it finds something to do making it even more of a waste of time.
Your efforts to resolve your issue are further thwarted by the provided link to a KB article that only applies to systems running SP1 - I am sure that is just another over site. In other words, if you have SP3, reading the article is just another
wild goose chase.
I now turn you back over to the Support Engineer.