I've been using Verification Engine (current version 2.7.0.37) running on Windows 7 Professional 32-bit for sometime now.
After installing windows updates which applied Service Pack 1 and upgraded internet explorer to v9, I got "Windows explorer has stopped working" errors whenever I opened windows explorer (my computer, my documents, etc, etc, etc). More worringly, I also got the same error message everytime I tried to open Control Panel or launch Add/Remove Programs via command line (control appwiz.cpl) or its .exe program so I wasn't able to rewind back to the restore point just before the updates were applied.

Fortunately, the Event Viewer wasn't affected by the Windows Explorer problem. The application log showed the same faulting module in every Application error log, namely VEngineIE32.dll. One of the event logs is shown below as an example:
Faulting application name: Explorer.EXE, version: 6.1.7601.17514, time stamp: 0x4ce796f3
Faulting module name: VEngineIE32.dll, version: 2.7.0.37, time stamp: 0x4b716d1d
Exception code: 0xc0000005
Fault offset: 0x0001d2e7
Faulting process id: 0x1060
Faulting application start time: 0x01cbf88e775422a3
Faulting application path: C:\Windows\Explorer.EXE
Faulting module path: C:\Program Files\Comodo\VEngine\VEngineIE32.dll
Report Id: d5677db4-6481-11e0-82d1-005056c00008
Solution to this "Windows Explorer has stopped working" errorRun program
C:\Program Files\COMODO\VEngine\VESetup.exeAllow program to make changes
At Welcome page, click on
Next>Select
RepairClick on
Next>At the "Do you want to keep your Verification Engine profile", I clicked on
YesVESetup repairs your installation
At Complete page,
keep or reset
the Reboot now option as required
Click on
FinishHope that helps you,
Alex