Download and install Spybot search and destroy as a starting point.http://www.safer-networking.org/en/index.html
If you have installed any freeware programs that show anything "Gator", you may have a big spyware problem. If you have trouble even downloading Spybot, this is also a clue to spyware contaminating your system.
When you install any freeware, like certain screensavers, date calendars, etc., you must read and understand all the disclaimers during the installation. You may be allowing spyware to run on your system. If you ever read anything about "Gator", A-B-O-R-T the installation.
Anytime you are one the net, you must have a good firewall, virus protection, and a good spyware program.
1)I would uninstall any other GUI programs. StyleXP will change your shell. Windowblinds will not change your shell.
2)I would also run Spybot search and destroy. Then, I would install the SP1 update for WindowsXP Pro. This may fix your problem. You can then try installing windowblinds.
If windowblinds still gives you an error, this likely means that your system is trash. I would then, backup important files, wipe the hard drive, freshly install WindowsXP, install SP1 from Windows update, get a good firewall, virus protection, and install spybot. Then, you can install windowblinds without problems. Windowblinds and the programs from Stardock(Iconpackager,DesktopX,LogonStudio,ObjectDock) will not hack your shell. The rest of the GUI programs may leave you where you are now.
If you don't want to set your system right as described above, I would not try to install windowblinds, sense it is giving you these warnings. No sense in blaming windowblinds. Good Luck.