Ouch – doesn’t sound too good …
Idea 1 – try removing Flash and putting it back on again. Usually worth a try, it’ll hopefully reset that install thing …
Idea 2 – Try different browser, I’m using Firefox at the moment instead of the Microsoft one. Sometimes the answer to a problem is to sneak up on its blindside and attack it from a direction it wasn’t expecting 🙂
Good luck !
PS This is precisely the reason why I’m a little wary of that Option 3 … PCs love to do things in not quite the way you wanted them to !