It appears from that report that all your file associations are gone

So first we will update you to SP3 to see if that cures it

http://www.microsoft.com/downloads/en/details.aspx?FamilyID=5b33b5a8-5e76-401f-be08-1e1555d4f3d4&displaylang=en

Then install IE8 http://www.microsoft.com/windows/internet-explorer/worldwide-sites.aspx

If that fails we will then run dial-a-fix

The extensions are being shown as a result of the tools - we will reset them later