As background:
A few days ago, some of my applications stopped working. Of note, I could no longer "Insert" any pre-made templates in Word 2007 (trial version) such as headers, cover pages, and so on.
I got the following error message:

Another program that isn't working is the NYTimes Times Reader software; something I'm rather fond of, this being a Tablet.
It won't even open - but when I report the error to Microsoft, up pops one of those helpful "We have an answer" dialogues. Clicking on that brings me to:

.....which is rather distressing, because I'm running Windows XPSP2 Tablet PC Edition:

On top of that, System Restore doesn't work. I haven't tried to force it manually, but even so....
Any ideas? My only though is that Microsoft Update installed a few things on Thursday (late), and that's somehow screwed everything up.