Ok, here is the layout.
Default settings stops Solidworks working. Custom settings stops Solidworks working.
Work around:- edit reg, blah, blah \solidworks\solidworks2008 to blah, blah \solidworks\solidworks2008 old
New profile works for around a week and then I have to repeat this procedure.
XP pro Solidworks office professional 2008, sp3.1 windows 2003 SBS sp2 server, all with the lastest updates , service packs etc....