Thank you Adeian. OK this is what I have done today, My visual studios were vanilla, so I have installed VS2008 SP1 and VS2012 upd 4, in addition to running windows update several times. I have also updated all the VC++ run times to the latest following this link:
https://support.microsoft.com/en-us/kb/2977003?wa=wsignin1.0
I also got rid of the older ones. So here is how it looks now:
Unfortunately none of these has helped. I still get msvcrt.dll in system32 folder to throw a runtime error. Looking at the dll, it is of a much older version, and I can't touch it as it is used by windows:
Here is the windows error reporting (.wer) file content:
Version=1
EventType=APPCRASH
EventTime=130745781078311024
ReportType=2
Consent=1
UploadTime=130745781330571712
ReportFlags=524288
ReportIdentifier=9a8a9b79-ec8b-11e4-826f-d4bed923d95e
IntegratorReportIdentifier=9a8a9b78-ec8b-11e4-826f-d4bed923d95e
NsAppName=Explorer.EXE
Response.BucketId=20b0c6437ffe1353bad3259333aff75b
Response.BucketTable=4
Response.LegacyBucketId=86017478439
Response.type=4
Sig[0].Name=Application Name
Sig[0].Value=Explorer.EXE
Sig[1].Name=Application Version
Sig[1].Value=6.3.9600.17667
Sig[2].Name=Application Timestamp
Sig[2].Value=54c6f7c2
Sig[3].Name=Fault Module Name
Sig[3].Value=msvcrt.dll
Sig[4].Name=Fault Module Version
Sig[4].Value=7.0.9600.17415
Sig[5].Name=Fault Module Timestamp
Sig[5].Value=545055fe
Sig[6].Name=Exception Code
Sig[6].Value=40000015
Sig[7].Name=Exception Offset
Sig[7].Value=0000000000057609
DynamicSig[1].Name=OS Version
DynamicSig[1].Value=6.3.9600.2.0.0.256.4
DynamicSig[2].Name=Locale ID
DynamicSig[2].Value=1033
DynamicSig[22].Name=Additional Information 1
DynamicSig[22].Value=74e4
DynamicSig[23].Name=Additional Information 2
DynamicSig[23].Value=74e4625ac70fd46f3560b625e69b5e8a
DynamicSig[24].Name=Additional Information 3
DynamicSig[24].Value=723a
DynamicSig[25].Name=Additional Information 4
DynamicSig[25].Value=723a3ae4257997e6d3eacbf3877fa708
UI[2]=C:\Windows\Explorer.EXE
LoadedModule[0]=C:\Windows\Explorer.EXE
.........................................................................................
........... long list of loaded dlls .............................
.......................................................................................
LoadedModule[243]=C:\Windows\system32\acppage.dll
State[0].Key=Transport.DoneStage1
State[0].Value=1
FriendlyEventName=Stopped working
ConsentKey=APPCRASH
AppName=Windows Explorer
AppPath=C:\Windows\Explorer.EXE
NsPartner=windows
NsGroup=windows8
ApplicationIdentity=56DA93BC9E3B753B94A0440F3A06BFDC
If anyone has ideas let me know. thanks.