The error message "is not a valid win 32 application" is inductive of a few things mainly:
1. If it was a download something went wrong and the file is incomplete.
2. A virus type infection, sadly the errors can keep happening even after removal.
I would suggest running a couple of online scans, but first I would take your log over to the HijackThis forum, down there in the security center, and giving a little description of your problem and one of us will check it over for you.
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then could I copy and paste the exe from a neighbouring/working pc, to overwrite the corrupted one?
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You could as one of the last things to try, but keep a back up copy of the original before overwritting it.