Have seen this under Windows XP and normally means gdi32.dll is corrupt.
Try ..
1. Boot from a Windows CD and go for the repair option.
2. Copy gdi32.dll from c:\windows\servicepackfiles\i386\gdi32.dll to c:\windows\system32\gdi32.dll. (Do keep a backup copy of the old gdi32.dll in c:\windows\system32 directory)