I have(maybe had) been infected by a worm which created a folder named "New Folder " description “IT University” ,I mopped the worm out with AVG (its thoroughly updated)…the worm has made my Task Manager, run (from the start menu) invisible
Does the Win key + R open the run dialog?
nope …
how abt booting in safe mode and cleaning the virus/registry from there?
go to this page
Troubleshooting Windows XP, Tweaks and Fixes for Windows XP
download the .reg file to enable task manager and regedit and run it. That should solve the problem.
If not, reformat it.
i dont think that might help cause when i press Ctrl+Alt+Del it says Task Manager Disabled by administrator
I believe the worm is cleaned (cause the folders arent getting created now …)but the damage is done 
read my above post and report back
EDIT:
Here is the reg file for enabling task manager
Thankx Kumar but how do i access da registry cause …run disabled too so i cannot type regedit
just right on the link,select the “save target as” and save the .reg file to the disk.Double click the .reg file and click ‘yes’. No need to access the registry editor.
by the way, to enable the registry editor, try this
Problem solved
Solution → http://www.castlecops.com/p905260-Infected_by_a_Worm_New_Folder_exe_IT_University_quicknews.html
Download Link-> http://downloads.andymanchesta.com/RemovalTools/SDFix.zip