Inspiron 1420 not opening documents, files, programs ect. System 'spazz out'?

Alright, here goes-

My relatively new Inspiron, about 3 months old, was working fine yesterday. Now, as I try to turn it on today, I notice the startup is a tad slow, but I pay no mind. Then, when I try to create a new folder, the whole computer does not respond, task manager refuses to open, and I am forced to shut down. This also happens with Programs, Powerpoint, Word, everything. I've noticed the sidebar also becomes distorted colorwise and is very slow to set up. This is new.

I restared in safe mode, where everything seems to be working alright. I used the System Reset, (it reset to yesterday) but the problem persists. Any help out there?