I went off topic there in my last post, sorry....
Back to the original problem. I have no replicated it four times; three on one desktop and once on another. I am not going to endanger my laptop because I may need to keep IE around on at least one machine.
On all but the last test, I was able to restore my system to a point where IE would start working again by going to a Windows restore point prior to the first installation of Active Home Pro.
On this desktop, the IE failure is not showing up now as an unexpected error when IE starts, and the first details available show the following:
AppName: iexplore.exe AppVer: 7.0.6000.16827 ModName: msvcrt.dll
ModVer: 7.0.2600.5512 Offset: 00036fa3
I'm not sure how the version references to 7 relate to my IE which is IE8.
Now after I uninstall AHP, and try to go back to the same restore point which used to get IE working again, I get a message that the restore point fails. Likewise if I try to go back to three or four earlier ones. I may be doing something out of order with respect to the restore points thing; I'm not sure.
The major reason this becomes a serious problem is that without IE, there's no way to get at the MS updates, and even though they will be restricted to only very serious security items for XP, there are still some showing up often for Office.
I forgot to check....is AHP even checked out with IE8?