Hi all,
Just wanted to feedback what actually fixed this.
Convinced the Registry settings for running exe files were corrupted. Don't think there was anything wrong with rundll32.exe itself.
Tried various registry patch scripts but made no difference.
Booted in Safe mode and ran windows restore with the restore point from a few days before it all went wrong. The restore did complain that it hadn't worked correctly, but everything now looks to be fine.

Thanks all for your suggestions.

windows repair is beckoning

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