Let me recap.
- You're able to login to the OS at Drive C.
- You have problem with accessing "My Documents" folder
- Desktop icons are blinking
Is that all? Please describe in details are the problems you face. I need to assses the situation before I can advise you.
You should be able to run a HijackThis scan if you're able to login. Ignore the blinking desktop & just run the scan. Then post the results here
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