Desktop files all are "bad"

Hello,
My computer began flashing error messages just as fast as they can flash when it is starting up that says "file is corrupt. It will name each program on my desktop and say "Corel Paint .EXe is bad file" It names every thing even explorer, outlook express, windows notebook, etc. It flashes a lot of different "Google" files that it calls bad files.

I have a Dell laptop with XP home media edition. My AVG says I have no spyware or malware, but this continues, and I can't locate it. Please help. Thanks!