Okay I got it fixed. The problem is with a Microsoft security update MS060105 which installs a new binary VERCLSID.exe which validates shell extensions. On some computers, those running HP software (like mine...camera, printer, etc etc) it will stop responding. So you basically download another file, run it, and then go to the "start - run" and type Regedit to navigate to where the shell extensions/cashed are, add a new "DWORD Value" with the value of 1. Anyway, if anyone else gets this problem the site is: http://support.microsoft.com/kb/918165 for the instructions & the code to enter. (hint: copy/paste the code, it's easier than typing it in lol)
You can still get the address bar in IE to work if you include the http (or you can start with the part after www. and then when you click enter also hold ctl)