Problems since SP2 update with IE7

I have a Dimension #2350 Windows 2002 XP Professional computer.  I have dsl fast access with Bellsouth my ISP.  Since I did the SP2 update, which came with IE7, I have had numerous problems.  All of my pictures in My Pictures and My Received Files became corrupted and I deleted them.  This computer came with ACD mPower Tools and image expert folder within it.  Before the update, I could see my pictures and upload them.  Now, I get invalid or error box and they all have changed.

 

I am manager and asst. mgr. of several msn groups.  So now I cannot upload photos for Welcoming new members nor create graphics pages!  I also cannot use the back button when doing mail or groups or surfing.  It is like it is locked.  It will not go back or load.  I have to continuously reput the addy in the address bar, sign-in, and start all over for everything I do.  Is IE7 causing this?  Also, I was used to deleting temporary internet files and cookies every day, and now to do so in IE7, you must also delete all your history, passwords or anything you put in forms online.  Please advise!