After about 2 weeks of searching I’ve finally found the answer and can go back to making movies.
It does help to have SERVICE PACK 2 in your WINDOWS XP CD!
NOTE: You must be logged on as Administrator or as a member of the Administrators group in order to perform this procedure.
Click Start , click Run , and then type the following command:
NOTE : There are no spaces at all in the preceding command line.
Click OK to open the INF folder.
Locate the file moviemk.inf
Right-click the file, and then click Install . This will reinstall the files that Search needs to proceed normally.
You will be asked to place your windows XP cd rom in the drive.