You certainly have an unusual problem. Have you checked the system for a
virus? Running a free online scan wouldn't hurt anything. If it's fine in Safe Mode,
this tells me that it's related to something running on the system.
Run a free online Virus scan: VIRUS
SCAN
Another possibility is an Internet Explorer file problem. Many IE files are part
of your desktop, and can even cause a blank desktop. Try the repair below to
check the IE files. If you receive a prompt that it can't be repaired, you must
reinstall it. Microsoft Internet Explorer
Repair Internet Explorer: Select Start/Run, type MSINFO32 in the 'Open'
box and press enter. From the 'TOOLS' menu select 'Internet Explorer Repair
Tool'. Then from the next menu select the repair option.