I cannot use any of my programs. They all have lnk at the end of them

If the file is lnk, then its not the program, that a link (shortcut) to the program.

What version of Windows? What happens when you click on the links?

WE need more info.

I am running windows xp service pack 2
When I click on the links nothing happens

Then they may be pointing to the wrong place. Right click and select Properties. Then check the Target and see if it's the right file. Also try running programs from the Start menu instead of desktop shortcuts.

You might also check for viruses, I vaguely recall a virus that disabled shortcuts.

That sounds like a virus, I had before.

What happens is when any executable file is clicked (such as .exe, bat, com, etc.), the virus copies itself as the file and renames the original with a "~" in front of the filename. (i.e. program.exe becomes ~program.exe), then nothing happens. Check your "my documents" folder. I think that is where you will find the renamed programs.

I researched this like mad, and tried everything, registry editing, spyware removal, etc. couldn't get rid of it. Ended-up re-formatting the HD and installed my backup image

Unfortunately this happened over a year ago, and I have forgotten how to diagnose it. :(

That sounds exactly what mine is doing. I can't open any programs. Not even my documents.
Thanks for the help. But will end up wiping out my hd and reinstalling windows,

If you backup certain files before wiping out the hard drive, make sure your not backing up the virus too... Since the virus is disguised as that certain file.

As an example, I had some drivers and applications that I keep on the hard drive for quick installation. I found that the "setup.exe" in all of them was actually the virus, thanks to NOD32.