XP Home -- weird problems

Customer brought in Sony Vaio PC today. P4 1.6 GHz PC with Windows XP Home (SP2). After logging in, the taskbar is all the way at the bottom of the screen. I can't move it or resize it. I did find out that if I right-click and enable a toolbar (ie - desktop), then I can move and resize it. It is not locked either. When I reboot, it goes back to the way it was. This applies under any username in both normal and safe modes. Also, When I minimize a window, it does not appear on the taskbar, it sits above it. I can then move it around the screen.

My questions are:

1. How do I get the taskbar to stay up after logging off or restarting.

2. How do I get the minimized windows to appear on the taskbar instead of above it.

PS -- I could just reload the system, but then I won't learn anything...

Thanks in advance for any help or suggestions.

Do you mean the taskbar is set to autohide ?
Have you checked the system over for the infamous tweak tools?

Taskbar is not set to autohide...if you hover the mouse over it, it does not appear. I cannon resize it either. I've cleaned up all spyware, adware, viruses, etc. using Trend Micro Housecall, Norton Antivirus, Adware, Spybot, Spy Sweeper, Hijack This, Regcleaner, cleared temp and temporary internet files. In addition, all of the windows updates have been installed as well.

I feel like I've done everything I can think of and I'm out of ideas.