mattyj,
Did you have Norton AV installed on the computer?
If you did and failed to fully remove it, then it would explain the difficulty you are having now. Norton is NOT easy to remove.
I hate to tell you this, but I think your looking at a reinstall of Windows.
From the error messages, corruption exists not only in the System32 directory, but the i386 drivers as well.
Apparently, the system partially crashed, or a virus caused damage.
You may want to try a Diskscan and Defrag first to see if that will clear up the errors.