I do have a HP scanner attached with the Full install HP scanning sw installed (Damn HP for installing all their crap sw that I never use, only want to scan, never want to post scans to web).
I reloaded the OS update, ran regedit for the share-to-web patch. All is fine now.
Note to the Win2000 user that is having the same issue. Did you notice that you need to close Vercisid.exe prog using task manager. For me I the program was not running.
In case anyone is interested, Prior to the OS update there was no "Hkey_local_machine\software\microsoft\windows\currentversion\shell extensions\cached" folder before the OS update.
Thanks for the Super Fast response to my problem.
CDfreaks is the best.